Blockchain Association Supports Fed's Removal of Reputation Risk
The Blockchain Association submitted a formal comment today supporting the Federal Reserve's removal of the "reputation risk" clause from regulatory procedures.
This move continues the Trump administration's efforts to end debanking, aiming to ensure that legitimate businesses do not lose access to banking services due to political or perceived factors.
In market mechanisms, crypto companies and innovative institutions are accelerating the recovery or opening of bank accounts due to improved regulatory clarity. Under event-driven circumstances, funds are flowing from overseas or underground channels into compliant U.S. banking systems, benefiting crypto-friendly banks and blockchain projects, while alleviating the pressure on businesses previously rejected due to reputation risk.
Source: Public Information
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Blockchain Association has previously lobbied against Operation Chokepoint 2.0-style debanking and has pushed for multi-state legislation to protect banking rights for crypto businesses in 2024-2025. This comment on the Fed's regulatory procedures continues its historical path of systematically eliminating politically motivated financial exclusion.
In terms of capital pathways, the Association mobilizes industry resources to support Fed policy adjustments through formal comment letters, motivated by the desire to lower compliance costs and open mainstream banking doors, helping portfolio companies and crypto businesses gain stable USD settlement and financing channels, while paving the way for a broader crypto-friendly regulatory framework.
Similar to the surge of underground channels after multiple banks rejected crypto clients due to reputation risk clauses in 2025, and the current government's clear shift towards ending debanking policies, the Blockchain Association's current actions indicate that U.S. crypto financial access is at a critical stage of transitioning from political exclusion to normalized access.
Essentially, this represents a regulatory change: removing reputation risk shifts banks' decision-making from subjective perceptions to strict legal compliance. The mechanism involves adjustments in the Fed's supervisory program that cut off political interference pathways, forcing capital to concentrate from high-risk overseas/underground finance into the compliant U.S. banking system, achieving a structural reconstruction from debanking suppression to open financial access.