• Fed proposes codifying removal of reputation risk from banking supervision. • Aim to halt crypto debanking driven by political or religious concerns. • 60‑day window for public comments on the regulatory change. • Vice Chair Michelle Bowman stresses discrimination is unlawful in banking. • Crypto leaders applaud move, calling it end of Operation Chokepoint 2.0. • Potential to position the U.S. as a global digital‑asset hub.
Article Summaries:
- The U.S. Federal Reserve has issued a 60‑day public comment period on a proposal to make permanent the removal of “reputation risk” from its banking‑supervision framework. The rule would prohibit supervisors from pressuring banks to close accounts based on a client’s political views, religious beliefs, or lawful business activities-issues that have fueled a wave of crypto‑debanking. Vice Chair Michelle Bowman said discrimination on these bases is unlawful. The move has been welcomed by crypto advocates, including Senator Lummis and Galaxy Digital, who view it as ending the so‑called Operation Chokepoint 2.0 that critics say targeted crypto firms. The Fed’s proposal follows a broader push by the current administration to curb debanking practices.
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