Fed proposes rule to deal with crypto debanking by scrapping 'reputation risk'

The Federal Reserve has proposed a new regulatory rule aimed at addressing the growing issue of cryptocurrency debanking, which involves financial institutions severing ties with crypto-related businesses and clients due to perceived risks associated with their operations. This initiative seeks to eliminate the concept of "reputation risk" that has often deterred banks from engaging with the cryptocurrency sector, thereby fostering a more inclusive financial environment that allows for the responsible integration of digital assets within the traditional banking system. Overall, the proposed rule signifies a significant shift in the regulatory landscape, as it aims to balance the need for consumer protection and financial stability with the desire to encourage innovation in the rapidly evolving world of cryptocurrencies. source: https://www.coindesk.com/policy/2026/02/24/fed-proposes-rule-to-deal-with-crypto-debanking-by-scrapping-reputation-risk