Overview

• On June 23, the Federal Reserve removed “reputational risk” from its bank supervision guidelines, a change mirrored by the OCC and FDIC.
• The adjustment is designed to steer banks toward evidence-based evaluations of cryptocurrency firms rather than subjective public perception.
• Crypto market capitalization rose 3 percent to about $3.3 trillion following the Fed’s announcement.
• Federal Reserve officials emphasized that banks remain free to serve crypto clients provided they meet safety and soundness standards.
• Senators including Cynthia Lummis have urged further steps such as repealing Section 9(13) of the Federal Reserve Act and codifying the change into law.