Federal Reserve plans to eliminate the "Reputation Risk" rule: restrictions on bank accounts for crypto companies may see significant easing

On February 24, the Federal Reserve announced the launch of a 60-day public consultation to remove the key assessment indicator of “reputational risk” from the banking regulatory framework. This move is seen by the market as an important signal for improving the banking service environment for cryptocurrency companies. If the proposal is approved, banks will no longer face additional regulatory pressure due to subjective reputational concerns when providing accounts and settlement services to digital asset firms, alleviating the long-standing issue of “debanking” from a systemic level.

In recent years, some regulatory environments in the U.S. have been criticized by industry insiders for creating implicit barriers to banking services for crypto companies. Some institutions have closed related accounts due to compliance and reputational concerns, leading to difficulties in opening bank accounts and restricted access to funding channels for crypto firms. The core goal of this policy adjustment is to reduce banks’ non-quantitative risk concerns about crypto businesses, enabling financial institutions to make decisions based on clear compliance standards rather than vague reputation judgments, thereby improving the financial accessibility of the digital asset industry.

At the policy support level, Federal Reserve Vice Chairman Bowman publicly stated that the proposal helps protect companies from unfair financial exclusion and promotes a more neutral and transparent financial system. Senator Lummis also expressed support, believing this will be an important step toward ending the “debanking” controversy. Market analysts suggest that this regulatory shift could strengthen the stability of long-term cooperation between crypto firms and traditional banks and improve liquidity access within the industry.

From an industry development perspective, if the banking service environment stabilizes, crypto startups and blockchain infrastructure companies will find it easier to access fiat channels, settlement services, and corporate accounts. This will have a profound impact on Web3 innovation, stablecoin settlement systems, and compliant operations of digital assets. Additionally, clearer banking regulatory rules are expected to attract institutional capital to reassess allocations in the crypto market.

This policy adjustment indicates that the U.S. is recalibrating the balance between crypto regulation and financial inclusion. As banks’ service predictability for digital asset companies improves, the compliance development space for the crypto industry may further expand, promoting the integration of digital assets into mainstream financial systems.