Fed’s New Rule: Crypto Banks Finally Free… Or Just Pretending?

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Behold, the U.S. Federal Reserve, that venerable institution of monetary wisdom, has taken a timid step toward alleviating the suffering of crypto enterprises. In a move as audacious as a mouse challenging a cat, the central bank has opened a 60-day window for public comments on a proposal to ban banks from using “reputation risk” as a convenient excuse to shun crypto firms. A triumph of bureaucracy, or merely a fleeting reprieve?

This proposal, if enacted, might lift one of the many chains that have bound crypto companies to the dungeon of traditional banking. Yet, one wonders: is this a genuine effort to liberate, or a hollow gesture to pacify an industry that has grown too large to ignore?

Federal Reserve Seeks Public Feedback on New Banking Rule

In its solemn declaration, the Fed declared it would “invite public comments” before finalizing the rule-a ritual as meaningful as a prayer in a courtroom. The proposal, it claims, aims to redefine how banks supervise clients, insisting decisions be based solely on “financial risk” and not the nebulous specter of “reputation.” A noble goal, or a smokescreen for the true agenda?

This shift is hailed by some as an end to “Operation Chokepoint 2.0,” a term that evokes the chilling precision of a well-orchestrated campaign to strangle innovation. Yet, one cannot help but notice the irony: the same Fed that once nurtured the giants of Wall Street now pretends to champion the underdog.

Last year, the Fed had already begun this slow dance, instructing supervisors to stop pressuring banks into closing accounts based on reputation alone. Instead, they must now evaluate customers using “measurable financial risks”-a phrase that sounds suspiciously like a bureaucratic euphemism for “pretend to care.”

U.S. Senator Cynthia Lummis, ever the voice of reason, welcomed the proposal with the enthusiasm of a man who’s finally found a parking spot. “Regulators should not unfairly restrict digital asset companies from accessing banking services,” she declared, as if the Fed hadn’t been doing precisely that for years.

“She stated that regulators should not unfairly restrict digital asset companies from accessing banking services.”

Why the Fed Is Changing Policy Now

The Federal Reserve’s sudden shift coincides with crypto’s growing embrace by the global financial system. The approval of spot Bitcoin ETFs has allowed titans like BlackRock and Fidelity to waltz into the crypto market, their pockets heavy with the promise of profit. These firms, reliant on banking infrastructure for custody and settlements, now demand a seat at the table-whether the Fed is ready or not.

By excising “reputation risk” from supervision, the Fed claims to reduce uncertainty for banks. Yet, one senses a deeper motive: to prevent the crypto industry from becoming a rogue element too powerful to control.

Why This Is Important for Crypto Companies

For years, crypto companies have endured the indignity of being shunned by banks, their accounts closed with the same indifference as a landlord evicting a tenant. Some banks, fearing regulatory backlash, have treated crypto firms as if they were plague carriers. A cruel irony, given that these same banks once thrived on the very chaos they now seek to tame.

In recent years, several global banks have cautiously extended a hand to crypto. BNY Mellon now offers crypto custody services, while Standard Chartered has launched digital asset custody-though one suspects their motives are as much about profit as principle. In the U.S., JPMorgan and Goldman Sachs have expanded their blockchain ventures, a testament to the industry’s growing influence.

If the new rule passes, crypto companies may find themselves granted access to banking services. Yet, one must ask: will this be true freedom, or merely a new set of chains, forged in the name of “compliance”? The answer, like the Fed’s true intentions, remains shrouded in mystery.

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2026-02-24 12:22