Overview
- The proposal would codify the Fed’s 2025 shift by removing reputational considerations from examinations and supervisory materials.
- Supervisors would base findings only on material financial, operational or compliance risks, and not pressure banks to drop lawful customers.
- The Board reaffirmed that serving legal businesses should not trigger penalties, while expectations for risk management and legal compliance remain intact.
- The effort aligns with parallel FDIC and OCC proposals, advancing a coordinated move toward clearer, quantifiable oversight standards.
- Coverage notes implications for crypto access to banking and reports the Fed intends to bring permitted payment stablecoin issuers into scope after separate rulemakings, as political and legal scrutiny continues with JPMorgan’s disclosure about closing Trump accounts and related litigation.