U.S. Federal Reserve Proposes Rule to Block 'Reputation Risk' in Bank Supervision, Potentially Easing Crypto Debanking

The available evidence suggests that the U.S. Federal Reserve proposed or implemented changes that effectively removed the 'reputation risk' rule—an internal supervisory guideline previously used to limit banking access for firms perceived as risky, including cryptocurrency-related entities. The most directly relevant and authoritative insight comes from commentary by the Bank Policy Institute, which discusses procedural transparency around these changes and how they impact banking availability for crypto firms. The Boston Review article provides contextual support, describing how the removal or modification of such rules alleviated the so-called 'crypto chokehold' on digital-asset businesses. Other sources, such as BIS and Venable LLP publications, address related regulatory themes but do not contradict the claim. While none of the sources constitute an official Federal Reserve statement posted on its site, the consistency among credible policy and legal analyses implies the rule was indeed removed or materially altered. Therefore, the statement is assessed as likely true, though confidence is moderate rather than high because primary federal documentation directly confirming the removal is not cited.