The US Federal Reserve said it had instructed its supervisor not to consider the “risk of reputation” under the supervision of banks, which the Crypto industry had long argued that it was used to target it unfairly and to Debnic Crypto firms.
Dangerous industries face significant challenges in establishing or maintaining banking relations, and this so -called Operation Chowk Point 2.0 was seen when more than 30 technology and crypto companies were denied banking services in the United States.
In a statement on Monday, the Federal Reserve Board said it had begun to evaluate and eliminate the risk of reputation and reputation from its caretaker content and replace them with more “specific conversation” around the financial risk.
At the same time, the board intends to train inspectors and ensure that this change is permanently implemented in the banks under its supervision, while also working with other Federal Bank Regulatory Agencies to promote permanent methods.
Banks will still need risk management methods
Despite the change, the Federal Reserve Board said it still expects the banks to maintain strong risk management, which is in accordance with all the rules and regulations.
The purpose of this change is not to see if the board -supervised banks use the concept of reputation in their risk management methods. “
The Federal Reserve describes the risk of reputation as the ability that negative advertising on the business methods of an organization, whether it be right or not, will lead to a reduction in customer base, expensive legalization, or reduction in revenue.
An honor for Crypto and Banking
US Senator Cynthia Lomes said aggressive reputation policies “killed American bitcoin and digital asset businesses, adding that” this is a victory, but still more work is yet to be done. “
Rob Nichols, president and CEO of the Banking Lobby Group American Bankers Association, also praised the decision in a statement, “This change will facilitate the caretaker process more transparent and consistency.”
He added, “We have long believed that banks should be able to make business decisions based on sensible risk management and free market, not regulators’ individual view.”
However, critics said that eliminating the risk of reputation could dissipate non -financial matters, bank stability, weaken monitoring and potentially dangerous fuel bank methods.
Regulators back to crypto
Other regulators and surveillance agencies in the United States have also begun to wrap up crypto -related sanctions this year.
Related: Second Crypto Stacking Guidance for us ‘Major Step Forward’: Crypto Council
The US Office of the Currency Controller confirmed in May that in its jurisdiction, banks could trade crypto on behalf of consumers and outsourcing some crypto activities to the third party.
The US Federal Deposit Insurance Corporation, an independent federal government agency, also said in a March letter that the agencies, including banks, could now be involved in crypto activities without prior approval.
Magazine: SEC’s U -Turn on Crypto does not answer key questions
