OCC to remove ‘reputational risk’ from bank inspection guidelines

The move from the national bank regulator came after increased pressure from Republicans

March 21, 2025 04:33 pm

Mark Van Scyoc/Shutterstock modified by Blockworks

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As President Trump was denouncing the “lawless” Operation Chokepoint 2.0 at the Digital Asset Summit, the Office of the Comptroller of the Currency yesterday said it will remove “reputational risks” from its examination manual for supervisors.

The move from the national bank regulator, which came after increased pressure from Republicans, will, in theory, prevent banks from refusing to serve clients involved in distasteful industries. That includes crypto.

“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,” acting Comptroller of the Currency Rodney E. Hood said in a Thursday statement.

Those in favor of removing “reputational risks” argue that banks are letting politics interfere by blocking customers that may be engaged in unpopular activities, even if those activities pose no actual financial risk to the bank.

Risk is, of course, still at the center of the examination handbook. But banks will have to prove a potential client truly endangers the institution to justify not accepting them as a client.

We’d heard from people familiar with the situation that the Trump administration is working on an executive order related to crypto and debanking. Given this move from the OCC, we imagine a ruling from the executive branch is no longer a top priority. We’ll still be keeping an ear out, though, so you just keep an eye on your inbox.

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