Why the Fed’s Banking Rule Change Is a Big Win for US Crypto Businesses
The Federal Reserve just removed its “reputational risk” guideline for supervising banks, which was a major tool for debanking crypto firms. This surprising breakthrough could help encourage more integration of TradFi and Web3.
To be clear, the Fed didn’t explicitly frame this as a win for crypto, and its brief statement never addressed the industry. Still, this rule change can encourage a broad shift in institutional attitudes.
The Era of Crypto Debanking EndsThe banking sector and crypto industry have had a troubled history over the past few years, but it’s not necessarily the banks’ fault.
Federal regulators waged a campaign of debanking against the crypto industry, greatly discouraging cooperation between these sectors. However, this damage is being reversed, and the industry won an important win today:
