Fed Drops ‘Reputational Risk’ Checks, Is it Good for Crypto?

Description

The Fed confirmed it will stop assessing banks on reputational risk, instead focusing on direct financial and legal risks, a shift expected to help banks serve crypto companies.

Authors

Iyiola Adrian

Publish date

June 24, 2025

Publisher

The Crypto Times

Web URL

https://www.cryptotimes.io/2025/06/24/fed-drops-reputational-risk-checks-is-it-good-for-crypto/#google_vignette

Referenced by

Fed eliminates reputational risk from supervisory framework

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News story

Now, with this new approach, banks may feel safer doing business with legal crypto companies, as long as there’s no financial danger. According to the Fed officials, “focus on the money risks, not the headlines.”

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But it’s now up to the banks to decide how much public image matters in their day-to-day work. The Fed said this change “is not intended to impact whether and how Board-supervised banks use the concept of reputational risk in their own risk management practices.”

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