OCC to Remove ‘Reputational Risk’ from Bank Examination Guidelines
At the Digital Asset Summit, President Trump criticized "lawless" Operation Chokepoint 2.0. Concurrently, the Office of the Comptroller of the Currency (OCC) announced it will eliminate “reputational risks” from its examination manual.
This change aims to prevent banks from denying services to clients in controversial sectors, including cryptocurrencies. Acting Comptroller Rodney E. Hood stated that the OCC's focus is on risk management rather than public opinion judgments.
Key points include:
- Banks must now demonstrate a client's actions pose a real risk to justify refusing service.
- The move follows pressure from Republican lawmakers.
- Speculation exists about an impending executive order from the Trump administration regarding crypto and debanking, though this OCC update may change its urgency.