Blockchain Association Seeks Codified Removal of Reputation Risk from Bank Supervision

The Blockchain Association has submitted a comment letter to the Federal Reserve in support of codifying the removal of 'reputation risk' from its bank supervision framework.

This move aligns with a broader trend towards regulatory harmonization across agencies, which could simplify compliance architectures for financial institutions and provide clearer rules for crypto firms.

The Association argues that formal codification would deliver administration-neutral, objective standards for regulated entities, reducing politically influenced enforcement.