US banks face potential pressure to serve crypto clients as supervisors drop reputational risk
US banks could be pushed to serve crypto-affiliated customers out of fear of political backlash, according to experts, as regulators remove reputational risk from supervision. Republican lawmakers previously accused agencies of using reputational concerns to justify debanking — the practice of denying or restricting services to certain customers.
Last week, the Federal Deposit Insurance Corporation said it is working to eliminate reputational risk as a criteria in its supervision of banks, following the earlier announcement that the Office of the Comptroller of the Currency will no longer examine lenders for reputation risk.
