The U.S. Federal Reserve has opened a 60-day public comment period on a proposal that would stop banks from using “reputation risk” as a basis for denying services to crypto companies. Under the proposal, customer decisions would need to rest on measurable financial risk rather than reputational concerns.
The change targets one of the most persistent problems for the industry in recent years: difficulty opening and keeping bank accounts. The source describes the move as a response to what many in crypto have called “Operation Chokepoint 2.0.” Last year, the Fed had already told supervisors not to pressure banks into closing accounts because of reputation concerns.
Supervision would center on financial risk
In its announcement, the Federal Reserve said it is seeking public feedback before finalizing the rule. The proposal focuses on how banks supervise clients and makes clear that those judgments should be tied to financial risk. The point is narrow, but the effect could be broad. Banks that want to work with digital asset firms may face less uncertainty in supervision.
U.S. Senator Cynthia Lummis welcomed the proposal and said regulators should not unfairly restrict digital asset companies from accessing banking services.
ETF approval changed the banking equation
The article links the policy shift to crypto’s deeper connection with the financial system. After spot Bitcoin ETFs were approved in the United States, major asset managers including BlackRock, Fidelity, and Franklin Templeton entered the market. Those firms depend on banking infrastructure for custody, settlement, and fund management, which makes access to bank services a practical issue rather than a fringe one.
Removing “reputation risk” from the supervisory framework could make it easier for banks to assess crypto relationships through a compliance lens. For banks, that means a clearer standard. For crypto firms, it touches the basics of operating cash flows and account stability.
Large banks are already building digital-asset rails
The source also notes that several global banks have already expanded into crypto and digital-asset services. BNY Mellon has started offering crypto custody to institutional clients, while Standard Chartered has rolled out digital-asset custody through Zodia Custody. In the U.S., JPMorgan and Goldman Sachs have been expanding blockchain and crypto services, and HSBC and Citi are also working on digital-asset infrastructure.
If the rule is approved, crypto companies in the United States may find it easier to open and maintain bank accounts. The first impact would likely be operational and compliance-related, with market confidence coming after that.