FDIC Drops "Reputation Risk" – Game-Changer for Crypto Banking Access

A major regulatory shift just happened: the FDIC is killing “reputation risk” as a factor in bank supervision. Translation? Banks can finally work with crypto companies without fearing regulator backlash.

Why This Matters

For years, “reputation risk” was basically a blank check for regulators to block banks from serving crypto. It was vague, subjective, and devastating for the industry’s access to banking services. The FDIC’s move aligns with the OCC, which already backed away from this playbook.

David Sacks called it a “major victory for crypto” – and he’s right. This kills the whole “Operation Chokepoint 2.0” vibe where regulatory pressure was quietly choking off crypto’s financial lifeline.

What Changes Now

• Banks get clearer rules: decisions based on actual risk metrics, not vibes
• Crypto companies have a legitimate shot at banking partnerships
• More room for institutional adoption and real infrastructure

The Catch

One policy win doesn’t fix everything overnight. The industry still needs to watch how these agencies enforce the new rules. Transparency and consistent fair treatment are non-negotiable if we want sustainable growth.

Bottom line: This is legitimately good news. The regulatory walls are cracking.