US regulatory agencies remove 'reputation risk' assessment clause to alleviate the issue of 'disconnection' from banks in the cryptocurrency industry

According to journalist Eleanor Terrett, one of the key factors that led to "debanking" in the past was regulatory requirements for banks to consider so-called "reputational risk" when assessing whether customers could access financial services. The Federal Reserve had instructed employees in its internal manual to pay attention to whether bank executives made "controversial remarks," but Federal Reserve Chairman Powell promised to remove the clause last month. The latest development shows that the Office of the Superintendent of the Currency (OCC) has officially removed "reputation risk" from its banking inspection standards, emphasizing that it will focus on more transparent risk areas in the future.