February 24 News: The U.S. Federal Reserve has officially advanced a regulatory proposal to end the “de-banking” of the crypto industry and has opened a 60-day public comment period on related banking regulations. This move is seen as a significant signal of a shift in U.S. financial regulatory policy, with the crypto industry generally believing it could weaken long-standing banking restrictions that have troubled digital asset companies.
According to official statements, the proposed rules aim to remove “reputation risk” as a core basis for banks to review clients from the regulatory framework, instead focusing on “material financial risk.” Regulators have previously instructed banking authorities not to require financial institutions to close accounts solely based on reputation concerns, which could provide clearer institutional protections for legitimate crypto businesses in opening accounts and accessing funds.
Vice Chair Michelle Bowman pointed out that regulators have previously pressured financial institutions to cancel services based on clients’ political stances, religious beliefs, or engagement in unpopular but legal industries, sparking widespread controversy. The crypto community refers to this phenomenon as “Choking Action 2.0,” believing it has limited digital asset companies’ ability to access traditional financial systems.
On the policy front, the Trump administration had previously pushed investigations into allegations of “de-banking” the crypto industry and used administrative measures to require regulatory agencies to review such practices. Senator Cynthia Lummis publicly supported the Federal Reserve’s latest proposal on social media, stating that regulators should not determine the banking access of digital asset companies based on subjective standards, and emphasizing that removing “reputation risk” is a key step toward ending de-banking in crypto.
Additionally, Alex Thorn, Research Director at Galaxy Digital, said that this policy adjustment could mark a move toward a more rational crypto regulatory environment in the U.S. As banking compliance standards become clearer, the policies on crypto company account opening, digital asset compliance frameworks, and access to crypto financial services are expected to become key focal points for U.S. crypto regulation and institutional entry by 2026.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
The U.S. Senate Banking Committee is scheduled to review the nomination of the U.S. Federal Reserve Chair, named Wash, on April 16.
The U.S. Senate Banking Committee will hold a hearing on April 16 to review Kevin Wosch’s nomination to serve as the Chair of the Federal Reserve. At the same time, the ongoing criminal investigation into the current Chair, Powell, may affect Wosch’s confirmation process. Committee members have said they will not vote to confirm before the investigation concludes, which could create a potential clash between two tracks of the Trump administration.
GateNews5h ago
U.S. March jobs smash expectations, with 178,000 added
In March, the U.S. added 178,000 jobs, recovering from February's losses and reducing the unemployment rate to 4.3%. The stronger-than-expected report may influence future interest rate decisions by the Fed amidst fluctuating oil prices.
CoinDesk5h ago
U.S. added 178k jobs in March, and Federal Reserve officials say low growth may become the new normal, but it is fragile amid wartime conditions
A Federal Reserve watcher said that the U.S. added 178k jobs in March, the unemployment rate fell to 4.3%, but wage growth slowed to the lowest level in five years. The average monthly number of new jobs was only 22.5k, the economic outlook is fragile, and inflation concerns may further limit the room for rate cuts.
GateNews5h ago
Market pricing shows expectations for Federal Reserve rate cuts in 2026 have fallen
Gate News, April 4, market pricing shows that bets on the Federal Reserve cutting rates in 2026 have eased.
GateNews6h ago
World Gold Council: In February, central banks in various countries net purchased 19 tons of gold; China continued to add to its holdings for the 16th straight month
The World Gold Council report shows that in February 2026, central banks in various countries net bought 19 tons of gold. Although this is below the 2025 average, it is up from January’s 5 tons. Central banks’ acceptance of gold continues to strengthen, with both the Czech Republic and China maintaining consecutive gold-buying records. Goldman Sachs and UBS predict that gold prices may rise in the future.
GateNews8h ago
The IMF urges the Bank of Japan to keep raising interest rates, saying that the Middle East war poses major new risks
The International Monetary Fund recommends that the Bank of Japan continue raising interest rates, despite new risks to Japan’s economy stemming from the Middle East war. Rising oil prices and yen depreciation have intensified inflation pressures. The IMF expects inflation to return to the 2% target in 2027 and emphasizes the importance of a flexible interest-rate policy.
GateNews11h ago
