The Blockchain Association has thrown its weight behind a key proposal from the Federal Reserve that could reshape how banks interact with crypto firms. At the centre of the debate is “reputation risk,” a supervisory metric critics say has been used to justify cutting off crypto companies from essential banking services.
In a formal response to the Fed’s request for comment, Ashok Pinto, the group’s executive vice president for legal and government relations, urged regulators to permanently remove the controversial standard. While the Fed already eliminated reputation risk from examination programs in June 2025, the association argues that codifying the change into rulemaking is necessary to prevent future reversals.
As a continuation of this administration’s efforts to end debanking, today, we submitted comment in support of the Fed’s proposed removal of “reputation risk” from its supervisory programs, because lawful businesses should not lose access to banking over politics or perception.…
— Blockchain Association (@BlockchainAssn) April 28, 2026
Push for clear, neutral rules
Pinto’s argument was that financial regulation should be grounded in objective criteria, not shifting political sentiment. He warned that reputation risk lacks consistency and transparency, making it vulnerable to misuse.
According to the association, the metric has historically enabled what critics call “Operation Chokepoint 2.0,” an alleged effort to pressure banks into severing ties with crypto-related businesses. By embedding the removal into formal rules, the group believes regulators can ensure that lawful industries are not unfairly targeted.
Backing this stance, research from the Cato Institute found that many debanking incidents in the US were driven more by regulatory pressure than by banks’ independent decisions. Pinto emphasized that without clear safeguards, any future administration regardless of political leaning, could revive similar tactics against other sectors.
Aligning regulators for consistency
Beyond the Fed, the Blockchain Association is calling for a unified regulatory approach. Pinto highlighted recent moves by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, which formally removed reputation risk from their supervisory frameworks earlier this month.
He argued that harmonizing standards across agencies would provide much-needed clarity for financial institutions and businesses alike. Consistent rules, he said, are essential for maintaining trust in the regulatory system and ensuring fair access to banking infrastructure.
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