The Federal Reserve of the U.S. has announced the exclusion of reputational risk from the banking supervision process, paving the way for crypto companies to access banking services.
Changes in Banking Supervision
On June 23, the Federal Reserve decided to remove 'reputational risk' from its supervisory reviews of banks. This change corresponds with measures introduced earlier by the OCC and FDIC, aimed at reducing regulatory barriers for crypto firms in the U.S. Banks will now be evaluated based on more accurate financial risk indicators.
Industry and Lawmaker Reactions
Industry leaders and lawmakers have supported this decision, heralding it as a significant move. Rob Nichols from the American Bankers Association noted, 'We have long believed banks should make business decisions based on prudent risk management and the free market, not the perspectives of individual regulators. This change will make the supervisory process more transparent and consistent.' Senator Cynthia Lummis also commented that it is a step forward while highlighting the need for further actions.
Market Conditions Analysis
As of now, Bitcoin (BTC) is trading at $105,497.72, with a market cap of $2.10 trillion. BTC holds a market share of 64.49%, and the 24-hour trading volume is $64.20 billion. Bitcoin has shown a 20.66% increase in value over the last 90 days. Coincu experts emphasize that this regulatory shift may stabilize market conditions, creating a more predictable environment for digital assets.
The exclusion of reputational risk from bank supervision signifies a major change for U.S. crypto firms, facilitating easier access to banking services and potentially reshaping the financial technology landscape.
