Federal Reserve Reconsiders Rules That Impact Crypto Banking

The Federal Reserve is taking a major step to make banking fairer for crypto companies. On February 24, 2026, the Fed announced a 60-day public comment period on a proposal to remove “reputation risk” from bank supervision rules. In simple terms, banks would no longer face pressure to close accounts for crypto firms based on perceived reputational concerns. This could mark a big turning point for the U.S. crypto ecosystem.

Federal Reserve Targets Debanking Practices

Over the past few years, some regulators have been accused of restricting crypto companies’ access to banking services. This is sometimes called “Operation Chokepoint 2.0.” For instance, JPMorgan closed accounts for Strike CEO Jack Mallers. Similarly, the Trump family filed a $5 million lawsuit after facing similar issues. By removing reputation-based risks, the Federal Reserve hopes to stop banks from making decisions that unfairly block crypto businesses.

How the Proposal Could Help Crypto Firms

Furthermore, the change could give digital asset companies more stability. Banks would no longer have vague reasons to refuse service. As a result, crypto firms could operate with more confidence. They could also access liquidity faster and build stronger banking relationships. Many analysts believe this could encourage more investment and innovation in the crypto sector.

Support From Leaders and Experts

The Federal Reserve proposal has already gained support from key figures. Fed Vice Chair Michelle Bowman praised the move as a way to protect businesses from unfair treatment. Senator Cynthia Lummis also welcomed it, calling it a necessary step to end debanking practices. In addition, media outlets such as Decrypt and Yahoo Finance highlighted how this change could create a fairer banking environment for crypto companies.

What the Federal Reserve’s Proposal Means for the Future

In short, this proposal could reshape how banks interact with crypto firms. By removing subjective reputational concerns, the Federal Reserve would make financial services more predictable. Consequently, crypto businesses could operate more smoothly. This could help both startups and established firms grow, and it might encourage wider adoption of digital assets. Overall, the move signals a shift toward fairer treatment and greater inclusion for the crypto ecosystem.

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