PANews reports that on February 24, following previous measures to remove reputation risk from bank regulation, the Federal Reserve Board is seeking public comment on a proposal to formally codify this removal into law, with a 60-day comment period. The proposal aims to officially eliminate “reputation risk” from bank examinations/regulation and reaffirms that banks should not be penalized or required to “debank” customers for engaging in lawful activities. Vice Chair Bowman stated that cases of “debanking” due to political, religious, or lawful but unpopular industries have already occurred. Bitcoin Magazine reports that this move could help alleviate regulatory pressure on crypto companies facing “debanking.”
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