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U.S. crypto advocate David Sacks hailed (https://x.com/davidsacks47/status/1904540971171512459) the FDIC’s decision to eliminate “reputational risk” as a factor in bank regulation as a major victory for the crypto industry. He argued that this vague and subjective standard had been used to unjustly de-bank legitimate crypto firms, contributing to what he termed “Financial Blockade 2.0.” Sacks emphasized that bank oversight should be based on objective, quantifiable criteria rather than public perception.

📰 NEWS: The @FDICgov is going to eliminate the use of reputational risk as a component of bank supervision.
 
This follows the Committee’s passage of @SenatorTimScott’s FIRM Act, which would codify the elimination of reputational risk across all federal banking regulators.

Big win for crypto: @FDICgov is following @USOCC's lead in removing “reputational risk” as a factor in bank supervision. “Reputational risk” may sound good in theory, but it was defined as “the potential that negative publicity regarding an institution’s business practices,