Fed proposes rule to deal with crypto debanking by scrapping 'reputation risk'

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Fed proposes rule to deal with crypto debanking by scrapping 'reputation risk' The proposal would cut the risk factor from Fed oversight and bar supervisors from pushing banks to cut off disfavored businesses, including in crypto. By Olivier Acuna | Edited by Jesse Hamilton Feb 24, 2026, 6:29 p.m. Make us preferred on Google The U.S. Federal Reserve Board made a move that could prevent further crypto debanking. (Jesse Hamilton/CoinDesk) What to know : The U.S. Federal Reserve has proposed a rule that would set in stone its previous actions to toss out "reputation risk" as a factor in bank supervision, which is believed to have contributed to the debanking of crypto insiders and firms. The move, open for a 60-day public comment period, would stop supervisors from pushing bankers to sever ties with politically disfavored businesses. Days after JPMorgan Chase & Co. admitted to debanking President Donald Trump after the Jan. 6, 2021 attack on the Capitol, the Federal Reserve seeks comments on its proposal that would stop government supervisors from pushing banks to sever ties with lawful customers based on their activities, including crypto companies. "We have heard troubling cases of debanking — where supervisors use concerns about reputation risk to pressure financial institutions to debank customers because of their political views, religious beliefs or involvement in disfavored but lawful businesses," including cryptocurrency, said Vice Chair for Supervision Michelle W. Bowman. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . "Discrimination by financial institutions on these bases is unlawful and does not have a role in the Federal Reserve's supervisory framework," she added. The Office of the Comptroller of the Currency, in its capacity as the supervisor of national banks, had already moved to cut reputational factors from its supervision last year, and the Federal Reserve had similarly announced in July that such risk would no longer be a part of its bank examinations, so this rule process would codify that move. Crypto debanking has been well documented and freely acknowledged by banking regulators appointed by Trump, though new examples continue to emerge. In a response to a lawsuit filed last month by Trump and the Trump Organization, JPMorgan, the nation’s largest bank, said for the first time that it cut off more than 50 Trump accounts in February 2021. JPMorgan did not specify a reason for closing the accounts. On Nov. 23, 2025, Jack Mallers, CEO of crypto payments company Strike, wrote a social media post that immediately went viral, saying JPMorgan closed all his accounts without cause. In a Jan. 26 memo to the Board of Governors , the Fed’s staff wrote that the board's proposal would “codify the removal of reputation risk from the Board’s supervisory programs” and prohibit the Fed from “encouraging or compelling” banks to deny or condition services to customers involved in “politically disfavored but lawful business activities.” In the proposal , the Fed Board said it intends to include “permitted payment stablecoin issuers” within its definition of covered banking organizations after completing separate rulemakings, a move that could directly affect crypto-native firms seeking access to the banking system. The Fed said comments on its proposal to remove reputation risk from its supervision of banks are due in 60 days from Feb. 23. Federal Reserve banking Regulations Donald Trump More For You Crypto.com wins initial approval for U.S. federally regulated crypto custodian bank By Francisco Rodrigues , AI Boost | Edited by Sheldon Reback Feb 23, 2026 The national trust charter institution would consolidate custody services under a single framework under federal oversight. What to know : Crypto.com received conditional U.S. approval to establish Foris Dax National Trust Bank, enabling expanded custody and digital asset services under federal oversight. The national charter would consolidate custody services under a single framework under federal oversight. Crypto.com joins a growing list of firms, including BitGo, Circle, Ripple, and Paxos, that have received conditional approvals for national trust bank charters in recent months. Read full story Latest Crypto News From niche to $3 billion run rate: prediction markets eye $10 billion future, Citizens says 32 minutes ago Bitcoin retakes $64,000, crypto miners rally, as AI-related software rout eases 1 hour ago Stripe's Bridge sees stablecoin volume quadruple as utility insulates from 'crypto winter' 1 hour ago Kraken rolls out crypto-style, 24/7 perpetuals trading for tokenized U.S. stocks 3 hours ago Adam Back's BSTR moving forward with public listing plans, hopes for April approval 3 hours ago Wall Street’s big blockchain win: SEC gives WisdomTree the green light for instant, around-the-clock trading 3 hours ago Top Stories Mark Zuckerberg's Meta is planning stablecoin comeback in the second half of this year 3 hours ago 'If you’re not accumulating bitcoin at this stage, then when,' asks prominent analyst 4 hours ago Coinbase adds stock, ETF trading as it expands beyond crypto 4 hours ago Putting the treasury to work: The Ethereum Foundation just staked 70,000 ETH to fund its future 8 hours ago Jane Street faces claims of insider trading that sped up Terraform's 2022 collapse 12 hours ago