The Board has started the process of reviewing and removing references to reputation and reputational risk from its supervisory materials, including examination manuals, and, where appropriate, replacing those references with more specific discussions of financial risk,” the Fed said in an official statement. “The Board will train examiners to help ensure this change is implemented consistently across Board-supervised banks and will work with the other federal bank regulatory agencies to promote consistent practices, as necessary.”

The Fed previously rated institutions’ reputational risk on the entire spectrum of risks
facing a banking institution, including credit, market, liquidity, operational, and legal risk. The move not only eases banking regulation, but opens the door for lesser crypto regulation and for institutions to operate crypto projects/offerings.