Good news from the Fed for crypto companies: The long-standing practice is being abolished.

The Fed is lifting the "reputational risk" policy that prevents crypto companies from accessing banking services. This decision is seen as overcoming another significant obstacle in front of the sector.
The American central bank, the Fed, announced that it will eliminate 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 supervision of banks.

Accordingly, this 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 reputational risk assessment from the guidelines. Before the Fed, major banking regulators such as OCC and FDIC had made the same decision.

A major obstacle in front of crypto companies has been removed.
The application in question was preventing crypto companies from accessing banking services. These companies have frequently faced issues in opening bank accounts or obtaining related services because they have been viewed as "high risk" or "potentially damaging to reputation" by banks up until now. One of those who personally raised these issues was Brian Armstrong, the CEO of Coinbase. Banks preferred not to accept customers from the crypto sector, carrying concerns about being warned due to "reputational risk" under the supervision of the Fed and other regulators.

Following 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 US in their processes of opening accounts and sustainably obtaining financial services.
#Crypto Market Rebound #Bitcoin Reserve Bill