U.S. Federal Reserve Suggested Banks Revise Assessment System for Cryptocurrency Firms, 2026/02/24 16:03:56

The Board of Governors of the Federal Reserve System (Fed) has proposed the removal of the “reputational risk” assessment from the criteria that banks consider when deciding on services for cryptocurrency companies.

Michelle Bowman, the Fed’s Vice Chair for Supervision, indicated that the U.S. central bank has observed “concerning instances” where banks, under pressure from officials, deny service to clients based on their political beliefs, religious convictions, or undesirable activities, including cryptocurrency operations. According to Bowman, banks justify their actions by citing concerns about their reputation.

The Fed believes that banks should focus on specific financial risks, such as creditworthiness, liquidity, and compliance with legal requirements, rather than on subjective worries regarding their public image. 

Republican Senator Cynthia Lummis from Wyoming endorsed the regulator’s proposal, stating that it would help alleviate pressure from banks on cryptocurrency traders and other firms dealing with digital assets. Ending the so-called ChokePoint 2.0 scheme, which involves restricting cryptocurrency companies’ access to financial services, would position the U.S. as a global hub for cryptocurrencies, the politician asserted.

Last year, Jack Mallers, the founder of the payment service Strike, complained that JPMorgan Chase had closed his account without providing a reason. Previously, attorney John Deaton, who advocates for cryptocurrency companies, urged banks to serve industry organizations without restrictions.