The American central bank, the Fed, announced that it will lift the "reputational risk" practice that has negatively affected cryptocurrency companies for many years. In the official statement, it was stated that the reputational risk factor will no longer be taken into account in the audits of banks.
According to this, the term will be removed from the audit guidelines, and auditors will be trained to focus on specific financial risks. Fed Chairman Jerome Powell stated in February during a session of the Banking Committee that they would remove the reputation risk assessment from the guidelines. Before the Fed, major banking regulators like the OCC and FDIC had made the same decision.
A major obstacle for crypto companies has been removed
The application in question was preventing crypto companies from accessing banking services. These companies have often faced issues in opening bank accounts or obtaining related services as they have been regarded as "high risk" or "potentially damaging to reputation" by banks up until now. One of those who personally raised these concerns was Brian Armstrong, the CEO of Coinbase. Banks preferred not to accept customers from the crypto sector due to concerns about being warned for "reputation risk" under the supervision of the Fed and other regulators.
After the OCC and FDIC, it is expected that the crypto sector's access to the traditional banking system will become easier after the Fed also abandons this practice. This development is thought to provide significant relief for crypto companies in the U.S. in their account opening and sustainable financial service acquisition processes.
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Good news from the Fed for crypto companies: The long-standing application is being lifted.
The American central bank, the Fed, announced that it will lift the "reputational risk" practice that has negatively affected cryptocurrency companies for many years. In the official statement, it was stated that the reputational risk factor will no longer be taken into account in the audits of banks.
According to this, the term will be removed from the audit guidelines, and auditors will be trained to focus on specific financial risks. Fed Chairman Jerome Powell stated in February during a session of the Banking Committee that they would remove the reputation risk assessment from the guidelines. Before the Fed, major banking regulators like the OCC and FDIC had made the same decision.
A major obstacle for crypto companies has been removed
The application in question was preventing crypto companies from accessing banking services. These companies have often faced issues in opening bank accounts or obtaining related services as they have been regarded as "high risk" or "potentially damaging to reputation" by banks up until now. One of those who personally raised these concerns was Brian Armstrong, the CEO of Coinbase. Banks preferred not to accept customers from the crypto sector due to concerns about being warned for "reputation risk" under the supervision of the Fed and other regulators.
After the OCC and FDIC, it is expected that the crypto sector's access to the traditional banking system will become easier after the Fed also abandons this practice. This development is thought to provide significant relief for crypto companies in the U.S. in their account opening and sustainable financial service acquisition processes.
Published: June 23, 2025 22:04