Krutika Adani
Fed Removes Reputational Risk Barrier for Banks
In a game-changing update, the Fed eliminates subjective risk assessments, allowing banks to offer custody, trading, and support to crypto companies without penalty.
Why It Matters
Fear of regulatory backlash held back banking services for crypto. That’s changing now — with clearer guidance and reduced red tape, crypto firms gain mainstream access.
The Bigger Picture
This move aligns with FDIC and OCC reforms, Chair Powell’s pro-innovation stance, and new legislation like the GENIUS Act focused on stablecoin oversight.
What’s Next
While capital rules and volatility still pose challenges, this is a major step toward normalizing crypto in traditional finance — and unlocking serious institutional adoption.