U.S. Bank Regulator Removes ‘Reputational Risk’ from Supervision Guidelines

The Office of the Comptroller of the Currency (OCC) has announced that U.S. national banks will no longer need to assess how controversial customers could harm their reputations. This change addresses concerns from crypto companies about being debanked.

Key points include:

The OCC removed this factor from its supervision handbook.
Acting Comptroller Rodney Hood emphasized risk management rather than public opinion in bank activities.
Federal Reserve Chair Jerome Powell also stated that similar scrutiny would be eliminated from the Fed's supervision manuals.
The OCC is easing compliance for banks involved in crypto by removing prior requirements for written pre-approval for digital asset business lines.
Jonathan Gould, nominated by President Donald Trump as the permanent OCC chief, will face a Senate confirmation hearing next week.