U.S. Senate Committee Proposes Bill to Curb 'Debanking' of Crypto Firms

On Thursday, Senate Banking Committee Chair Tim Scott introduced the Financial Integrity and Regulation Management Act, aiming to prevent federal regulators from using 'reputational risk' to restrict banking services to cryptocurrency firms and other 'disfavored political groups.' The bill seeks to eliminate references to reputational risk in assessing the safety and soundness of banks. This initiative follows increased criticism from the crypto industry, which claims government agencies are cutting them off from the financial sector. The bill has support from the American Bankers Association, the Blockchain Association, and the Bank Policy Institute.