Based on Coinotag, the FDIC board is set to review a proposed rule that would limit regulators' use of 'reputation risk' as a basis for supervisory actions. This move could curb alleged crypto debanking and affect how banks handle digital asset-related activities. Acting Chair Travis Hill supports reevaluating supervisory approaches to prevent what critics call 'politicized or unlawful debanking.' The rule, if adopted, would narrow when examiners can cite reputation concerns to restrict bank services, potentially impacting crypto-related banking relationships. Public records show regulators previously asked banks to pause crypto activity, citing reputation risk. The FDIC is scheduled to discuss the proposed rulemaking in an upcoming meeting, with a public comment period likely to follow.
FDIC Considers Restricting Use of Reputation Risk in Supervision, May Impact Crypto Banking
CoinotagShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.