Blockchain Association Backs Federal Reserve's Formal Removal of 'Reputation Risk' from Banking Oversight

Gate News message, April 28 — The Blockchain Association, a major U.S. crypto advocacy group, has expressed support for the Federal Reserve's proposal to formally remove "reputation risk" from its banking regulatory framework. In a letter to the Fed, the association noted that reputation risk was already de facto removed from examination procedures in June 2025 and should now be codified into formal rules.

The organization highlighted that reputation risk was historically used to justify cutting off banking access to crypto companies, characterizing it as part of "Operation Choke Point 2.0." According to the association, the neutrality of reputation risk depends on the political leadership in power, making formal rules essential to provide consistent protections across administrations and industries.

The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) completed similar rulemaking on April 7. The Blockchain Association has called on the Federal Reserve to align its final rule with those of these agencies, ensuring regulatory consistency across U.S. banking supervisors.