Federal Reserve Proposes Rule to Boost Crypto Banking Access

The Federal Reserve has announced a proposal aimed at removing one of the biggest barriers between crypto companies and traditional banking. According to the plan, banks would no longer be able to deny services to crypto firms based on 'reputation risk' without using clear, measurable financial risk metrics.

This move is seen as an effort to end what many have labeled Operation Chokepoint 2.0, a perceived pattern of regulators informally pressuring banks to sever ties with digital asset firms. The Federal Reserve has emphasized that supervision should not be driven by vague concerns about public perception, but rather on sound risk management, capital requirements, and compliance assessments.

Industry advocates argue that formalizing these principles could reduce the uncertainty that has discouraged regional and community banks from working with digital asset firms. A clear rule may also help level the playing field between large global institutions and smaller lenders.