Federal Reserve Moves to Improve Banking Access for Crypto Industry

The US Federal Reserve has taken a significant step towards improving banking access for the crypto industry by proposing a new rule that removes 'reputation risk' as a reason for banks to deny services.

Under the current system, banks have been able to refuse to provide services to crypto companies due to concerns over their reputation. However, the Federal Reserve's proposal would ensure that banks base their decisions on financial risk rather than reputation.

The move is expected to bring relief to the crypto industry, which has long struggled with financial exclusion. Crypto companies have often found it difficult to open and maintain bank accounts, limiting their ability to operate effectively.