{"id":33308,"date":"2025-06-24T02:31:43","date_gmt":"2025-06-24T02:31:43","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=33308"},"modified":"2025-06-24T02:31:43","modified_gmt":"2025-06-24T02:31:43","slug":"fed-drops-reputational-risk-standard-easing-path-for-crypto-banking","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=33308","title":{"rendered":"Fed Drops \u2018Reputational Risk\u2019 Standard, Easing Path for Crypto Banking"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">The Federal Reserve has officially joined the FDIC and the OCC in removing \u201creputational risk\u201d from the list of factors used to assess whether banks can do business with certain industries. <\/span><span data-preserver-spaces=\"true\">This quiet <\/span><span data-preserver-spaces=\"true\">but<\/span><span data-preserver-spaces=\"true\"> significant update could <\/span><span data-preserver-spaces=\"true\">change<\/span><span data-preserver-spaces=\"true\"> how banks <\/span><span data-preserver-spaces=\"true\">engage<\/span><span data-preserver-spaces=\"true\"> with the <\/span><span data-preserver-spaces=\"true\">crypto<\/span><span data-preserver-spaces=\"true\"> world.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For years, crypto companies <\/span><span data-preserver-spaces=\"true\">in the United States<\/span><span data-preserver-spaces=\"true\"> have faced a frustrating problem.<\/span><span data-preserver-spaces=\"true\"> Even when fully legal and compliant, many found themselves locked out of traditional banking. The issue wasn\u2019t fraud or instability. It was <\/span><span data-preserver-spaces=\"true\">image<\/span><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">Banks were <\/span><span data-preserver-spaces=\"true\">worried<\/span><span data-preserver-spaces=\"true\"> that working with <\/span><span data-preserver-spaces=\"true\">crypto<\/span><span data-preserver-spaces=\"true\"> firms would <\/span><span data-preserver-spaces=\"true\">hurt<\/span><span data-preserver-spaces=\"true\"> their reputation.<\/span><span data-preserver-spaces=\"true\"> That kind of risk, often vague and hard to define, could trigger extra scrutiny during exams. It discouraged banks from touching anything remotely controversial.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That barrier just got a lot lower.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Why This Decision Matters Now<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The concept of reputational risk was never clearly defined. It gave regulators broad discretion to flag a bank for doing business with companies that were legal but unpopular in some circles. Crypto firms have long felt the pressure from this. Some have been dropped by their banks without explanation. Others never got access in the first place.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.1.0\/72x72\/1f1fa-1f1f8.png\" alt=\"\ud83c\uddfa\ud83c\uddf8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> FED JUST OFFICIALLY REMOVED <br \/>&#8220;REPUTATIONAL RISK&#8221; FOR BITCOIN <br \/>AND CRYPTO BANKING.<\/p>\n<p>BULLISH FOR CRYPTO <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.1.0\/72x72\/1f680.png\" alt=\"\ud83d\ude80\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> <a href=\"https:\/\/t.co\/fuvl7RnbKU\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/fuvl7RnbKU<\/a><\/p>\n<p>\u2014 Ash Crypto (@Ashcryptoreal) <a href=\"https:\/\/twitter.com\/Ashcryptoreal\/status\/1937220002631024654?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">June 23, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">The change from the Fed means that banks are no longer expected to consider how public perception might affect their business relationships. They are still required to assess financial, operational, and legal <\/span><span data-preserver-spaces=\"true\">risk<\/span><span data-preserver-spaces=\"true\">, but the question of what might look bad is no longer part of the equation.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This doesn\u2019t mean banks will rush to onboard crypto clients tomorrow, but it does clear up a gray area that has held things back. Now, banks can focus on what actually matters\u2014whether a client is safe, compliant, and financially sound.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/high-risk-high-reward-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">9+ Best High-Risk, High-Reward Crypto to Buy in June 2025<\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">A Break for Crypto\u2019s Banking Problem<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">For crypto firms, this update removes a major source of friction. Many companies have been stuck relying on foreign institutions or risky payment workarounds just to handle basic banking. Even large, well-established platforms struggled to maintain consistent relationships with U.S. banks. And smaller startups? They barely stood a chance.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With the reputational hurdle <\/span><span data-preserver-spaces=\"true\">gone<\/span><span data-preserver-spaces=\"true\">, banks are in a better position to evaluate crypto clients based on real risk, <\/span><span data-preserver-spaces=\"true\">not<\/span><span data-preserver-spaces=\"true\"> speculation or fear of <\/span><span data-preserver-spaces=\"true\">bad<\/span><span data-preserver-spaces=\"true\"> press.<\/span><span data-preserver-spaces=\"true\"> That opens the door, at least in theory, for more stable and long-term partnerships.<\/span><\/p>\n<div class=\"cpp-crypto-chart cpp-crypto-chart-99btc cpp-crypto-chart-btc\" data-coin-symbol=\"btc\" data-price-usd=\"BTC Price (USD)\" data-main-color=\"#4caf05\" data-watermark-image=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/06\/99bitcoins-logo.png\" data-chart-style=\"99btc\">\n<div class=\"cpp-chart-top-section\">\n<div class=\"cpp-chart-info-section\">\n<div class=\"cpp-chart-logo\"><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2024\/02\/26205235\/btc.svg\" alt=\"btc logo\"><\/div>\n<div class=\"cpp-chart-coin-details\">\n<div class=\"cpp-chart-labels-row\">\n<div class=\"cpp-chart-coin-name\">Bitcoin<\/div>\n<div class=\"cpp-chart-price-info\">Price<\/div>\n<div class=\"cpp-chart-market-cap\">Market Cap<\/div>\n<\/div>\n<div class=\"cpp-chart-values-row\">\n<div class=\"cpp-chart-coin-symbol\">BTC<\/div>\n<div class=\"cpp-chart-price\"><\/div>\n<div class=\"cpp-chart-market-cap-value\">$2.09T<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"cpp-chart-selectors cpp-chart-selectors-99btc\"><span class=\"cpp-chart-selector\" data-period=\"24h\">24h<\/span><span class=\"cpp-chart-selector\" data-period=\"7d\">7d<\/span><span class=\"cpp-chart-selector\" data-period=\"30d\">30d<\/span><span class=\"cpp-chart-selector\" data-period=\"1y\">1y<\/span><span class=\"cpp-chart-selector\" data-period=\"all_time\">All time<\/span><\/div>\n<\/div>\n<p><canvas id=\"cpp-chart-685a0b906cdf1\" class=\"cpp-chart-container cpp-chart-container-99btc\"><\/canvas><\/div>\n<p><span data-preserver-spaces=\"true\">Of course, crypto still carries real risk. Banks will continue to monitor for fraud, compliance failures, and volatility. But those are standard parts of any risk assessment. What changes now is that the decision to work with a crypto firm is no longer shadowed by what regulators or the media might think about it.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-cryptocurrency\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Best New Cryptocurrencies to Invest in 2025<\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">Setting the Tone Across Agencies<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The Fed\u2019s move is part of a broader effort to bring consistency across U.S. financial oversight. Earlier this year, both the FDIC and the OCC made the same adjustment. With all three major regulators aligned, the message is clearer. Banks will not be punished for working with legal businesses simply because they are controversial.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This creates a more predictable environment for both banks and the crypto industry. It also removes a layer of discretion that some <\/span><span data-preserver-spaces=\"true\">viewed<\/span><span data-preserver-spaces=\"true\"> as inconsistent or even political. Going forward, if a firm meets legal and compliance requirements, it should be able to access essential financial services without facing invisible roadblocks.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">A More Practical Approach to Risk<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The decision to drop reputational risk does not mean regulators are taking their foot off the gas. It means they are narrowing their focus to real, measurable threats to safety and stability. That shift could help modernize oversight for industries that are rapidly evolving.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Crypto is still far from fully integrated into the traditional financial system, but this is one less obstacle standing in the way. And for companies that have spent years fighting for basic banking access, that is a meaningful step forward.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"nofollow noopener nofollow\"><span data-preserver-spaces=\"true\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/span><\/a><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<ul class=\"nnbtc-key-takeaways__list\">\n        <\/ul>\n<p><\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The Federal Reserve has removed reputational risk from its supervisory guidelines, aligning with the FDIC and OCC.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Banks are no longer required to consider public image when deciding whether to work with crypto firms.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        This change makes it easier for legal and compliant crypto companies to access traditional banking services in the U.S.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The move could lead to more stable partnerships between banks and crypto firms based on real risk, not fear of controversy.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        With all three major regulators aligned, the decision signals a more consistent and objective approach to financial oversight.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\"><br \/>\n    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/span><\/p>\n<\/div>\n<p>    <\/span><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/adoption\/fed-ends-reputational-risk-rule-opening-door-for-crypto-banks\/\">Fed Drops \u2018Reputational Risk\u2019 Standard, Easing Path for Crypto Banking<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve has officially joined the FDIC and the OCC in removing \u201creputational risk\u201d from the list of factors used to assess whether banks can do business with certain industries. This quiet but significant update could change how banks engage with the crypto world.\u00a0 For years, crypto companies in the United States have faced [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-33308","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/33308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33308"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/33308\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}