23.06.2025 23:01

The Federal Reserve's recent decision to eliminate the "reputational risk" guideline in its bank supervision framework marks a significant turning point for the cryptocurrency industry. This surprising move, though not explicitly mentioning cryptocurrencies, effectively removes a key regulatory tool used to discourage banks from working with crypto firms, a practice commonly known as "debanking."

Previously, this guideline allowed regulators to pressure banks into severing ties with crypto companies, citing potential reputational damage as justification. This regulatory approach significantly hindered the integration of traditional finance (TradFi) and the decentralized finance (Web3) ecosystem, creating a climate of uncertainty and mistrust. The removal of this guideline could foster a more collaborative and inclusive environment.

While the Federal Reserve's statement remained neutral on the subject of cryptocurrencies, the impact of this change is readily apparent. The elimination of this specific criterion follows a similar decision by the FDIC earlier this year, signaling a broader shift in regulatory attitudes. This culminates a period of considerable tension between the banking sector and the crypto industry, stemming from concerns about regulatory compliance and perceived risks.

This regulatory change represents a substantial victory for the cryptocurrency sector, removing a major obstacle to mainstream adoption. With the Federal Reserve, previously the last major holdout, joining the FDIC in this regulatory shift, the era of widespread crypto debanking is effectively over. This decision, while subtle in its phrasing, significantly alters the landscape, potentially paving the way for greater cooperation and a more robust financial ecosystem encompassing both TradFi and Web3. The long-term consequences of this shift remain to be seen, but the immediate effect is a positive one for crypto businesses and their access to traditional banking services.