Critical step for crypto from Fed: ‘Risk of reputation’ was removed from bank inspections
The US Federal Reserve (FED) officially abolished the “risk of reputation” criterion that damages the relationship between banks and crypto companies. This change follows the steps taken by other regulators such as OCC and FDIC. Wyoming Senator Cynthia Lummis described this development as a “victory ..
The FED announced on 23 June 2025 that he had abolished the concept of “reputation risk ında in bank inspections. This risk was often put pressure on the fact that banks kalmak avoiding working with sectors that could damage their reputation - Crypto companies were in this group.
In the new system, audits will focus on more concrete financial risks:
Quality of corporate risk assessment processes
The ability to monitor and control risks
Legal Compliance and General Safety Criteria
💬 What does the Fed say?
“This change does not change our expectations to maintain strong risk management practices of banks. Banks are still free to use the risk of reputation in their internal management systems.”
- Fed Board of Directors
🏦 Is the ‘Debanking’ period closing?
The crypto industry has been difficult to establish permanent relations with banks for years. Especially after the FTX collapse, financial authorities took harder steps against crypto initiatives and many banks had closed the accounts of these customers. This is defined as “Debanking ..
“Biden management put pressure on banks. Crypto enterprises’ accounts were closed, money transfers were stopped. This is the use of the government as a weapon against the sector.”
- Donald Trump, March 2025
⚖️ Political Reflections: State pressure on crypto is being discussed
Castle Island Ventures Founding Partner Nic Carter calls this process “Operation ChoketPoint 2.0 .. Allegedly, the crypto sector was systematically pushed out of banking.
Against these pressures, Tim Scott, President of the Senate Banking Committee, presented a similar draft law in March: proposal to prohibit the use of “reputation risk ında under the supervision of banks.
🗣️ Cynthia Lummis: “This is a victory, but not enough”
Wyoming Senator and crypto -friendly politician Cynthia Lummis evaluated the Fed’s decision with the following words:
“This is definitely a gain. But there’s more to do.”
The Fed’s decision is removed by the largest psychological barrier that allows banks to be afraid to serve crypto companies. This is an important step for the adoption of corporate crypto in the USA. However, since the pressures in the past damage sector confidence, the cautious stance of banks’ approach to crypto may not change immediately.
Nevertheless, this decision is interpreted as a powerful signal that the US crypto market can be reopened.
