<ul data-eligibleForWebStory="true"><li>The US Federal Reserve has ended the use of 'reputational risk' in its oversight of banks dealing with the crypto sector.</li><li>More than 30 US technology and crypto firms were denied banking services under Operation Chokepoint 2.0, which considered certain industries as risky.</li><li>The Fed instructed its supervisors to stop considering 'reputational risk' in banking partnerships with crypto enterprises.</li><li>The Federal Reserve Board is revising supervisory materials to focus on financial risks instead of reputational risks.</li><li>The board will ensure uniform application of these changes across all banks it oversees, in line with other federal bank regulatory bodies.</li><li>Despite the change, banks are still expected to comply with all relevant rules and regulations in their risk management practices.</li><li>Reputational risk was defined as the potential negative impact of bad press on a company, affecting customer trust and financial stability.</li><li>Critics argue that removing reputational risk considerations could hide non-financial concerns and lead to riskier banking practices.</li></ul>

US Fed Ends Use of ‘Reputational Risk’ in Crypto Banking Oversight

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