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Senate panel advances debanking bill to block regulators from using reputational risk in supervision

The Senate Banking Committee voted to advance a bill that would eliminate references to reputational risk as a way for federal regulators to supervise financial institutions.

The committee voted 13- 11 to advance that bill to the Senate on Thursday during a markup where the committee also voted to move forward with a bill to regulate stablecoins. Work would still need to be done on the House side.

The bill, called the Financial Integrity and Regulation Management Act, aims to address concerns around debanking and would block regulators from using reputational risk to supervise risk — following the crypto industry's condemnation of government agencies they say are cutting them off from the financial sector. Notably, Democrats did not vote to support the bill.

https://www.theblock.co/post/346219/senate-panel-advances-debanking-bill-to-block-regulators-from-using-reputational-risk-in-supervision