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The Federal Reserve just made a move that could quietly reshape crypto’s relationship with traditional banking. The Fed announced on June 23 that it will drop reputational risk from its bank examination programs—a change that crypto advocates have been pushing for years and one that could finally open the floodgates for mainstream crypto banking services.
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While the Fed’s announcement sounds like regulatory wonkery, it strikes at the heart of crypto’s biggest problem: banking access. For years, crypto companies have struggled to maintain basic banking relationships, not because they posed financial risks, but because banks feared regulatory blowback over the industry’s controversial reputation.
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“Reputational risk” gave regulators a catch-all tool to pressure banks away from crypto clients. Even legally compliant crypto exchanges, custody providers, and blockchain startups often found themselves cut off from banking services simply because regulators deemed the industry too risky from a PR perspective.
Now, with reputational risk officially removed from examinations, banks will be evaluated purely on measurable financial metrics—not on whether they serve industries that generate negative headlines.
The crypto industry has long argued that regulatory hostility, not actual risk, kept banks at arm’s length. Major crypto companies like Coinbase (NASDAQ:COIN), Kraken, and Circle (NYSE:CRCL) have repeatedly highlighted how difficult it is to secure and maintain banking relationships, despite operating as regulated entities.
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This change could fundamentally alter that dynamic. Here’s what might happen:
