U.S. Bank Agency Cuts 'Reputational Risk' From Exams After Crypto Sector Cites Issues

The crypto industry argued that U.S. regulators used the idea of risks to banks' reputation to pressure them to reject digital assets clients, and the OCC has answered.

Mar 20, 2025, 10:28 p.m. UTC

U.S. national banks have been told by the Office of the Comptroller of the Currency that they'll no longer have to answer how controversial customers might damage their reputations — a point that had been criticized by crypto companies and insiders arguing that it contributed to them being debanked.

The OCC is removing that factor from its supervision handbook, the agency said in a Thursday statement.

“The OCC’s examination process has always been rooted in ensuring appropriate risk management processes for bank activities, not casting judgment on how a particular activity may fare with public opinion,” said Acting Comptroller of the Currency Rodney Hood.

Federal Reserve Chair Jerome Powell had made a similar commitment in a congressional hearing last month that the Fed would cut that category of scrutiny from its internal supervision manuals.

The OCC has been making moves to ease the compliance path for banks engaging in crypto business. It recently erased earlier guidance that had called for

banks to get pre-approval in writing from the agency if they wanted to handle digital assets business lines.

The banking regulator may soon have its permanent chief, with President Donald Trump's nominee, Jonathan Gould, facing a Senate confirmation hearing next week. The head of the OCC tends to be able to act more quickly and decisively than other financial regulators, because the person operates as the sole authority without a commission or board to seek approval from.

Jesse Hamilton

Jesse Hamilton is CoinDesk's deputy managing editor on the Global Policy and Regulation team, based in Washington, D.C. Before joining CoinDesk in 2022, he worked for more than a decade covering Wall Street regulation at Bloomberg News and Businessweek, writing about the early whisperings among federal agencies trying to decide what to do about crypto. He’s won several national honors in his reporting career, including from his time as a war correspondent in Iraq and as a police reporter for newspapers. Jesse is a graduate of Western Washington University, where he studied journalism and history. He has no crypto holdings.