The US Federal Reserve said that it has instructed its observers not to consider the “iconic risk” in their inspection of banks, which the Crypto industry had long argued that they were incorrectly used for targets and debank crypto firms.
Industries face important challenges in establishing or maintaining banking relations, and it was seen running the so -called. Operation Chokpoint 2.0 When there were more than 30 technology and crypto companies Deprived of banking services In America.
In a statement on Monday, Federal Reserve Board Said This has begun reviewing and removing references of reputation and reputable risk from its supervisory materials and replaced them with more “specific discussion” around financial risk.
At the same time, the board plans to train examiners and ensure that the change is continuously implemented in banks under its supervision, while working with other federal bank regulatory agencies also to continuously promote practices.
Banks will still need risk management practices
Despite the change, the Federal Reserve Board said it still expects banks to maintain strong risk management that complies with all laws and rules.
This change is also “not to affect whether the board-parasit banks use the concept of reputed risk in their own risk management practices.”
federal Reserve Defined risk As a negative publicity about the business practices of an institution, whether it is true or not, the decline in customer base, expensive litigation, or revenue reduction will be the cause.
A boon for crypto and banking
American Senator Synthia Lummis Said Aggressive reputation risk policies “killed American bitcoin and digital asset businesses,” saying “this is a win, but still more work is to be done.”
Rob Nichols, President and CEO of Banking Lobby Group The American Bankers Association Praised The decision in a statement, “The change will make the supervisory process more transparent and consistent.”
He said, “We have long believed that banks should be able to make professional decisions based on rational risk management and free market, not the individual approach of regulators,” he said.
However, critic Said Eliminating prestigious risk can cause non-financial issues to be uncovered, bank stability can be affected, the oversight can be weakened and potentially affect fuel-risk bank practices.
Regulator back crypto freeze out
Other regulators and oversite bodies in the US have started to curb back Crypto restriction This year too.
Connected: SEC Crypto Steaking Guidance ‘Major Step forward’ for us: Crypto Council
The US office of the controller of the currency confirmed in May Banks can trade crypto under its jurisdiction Customers outsource third parties and some crypto activities.
US Federal Deposit Insurance Corporation, also an independent federal government agency, also In a March letter, the institutions said under their inspectionIncluding banks, now can engage in activities related to crypto without prior approval.
