04/08/26

The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have finalized a joint rule eliminating the use of reputational risk as a factor in their supervisory processes.

This rule formalizes a shift that agency leadership had already directed examiners to implement. It also aligns with a broader push during the Trump administration to remove policies believed to have led regulators to unfairly target certain sectors, including cryptocurrency.

Additionally, the rule bars the agencies from pressuring or directing financial institutions to close accounts or take other actions based on a customer’s political, social, cultural, or religious beliefs.