TechFlow news — On March 25, the Republican X account of the U.S. Senate Banking Committee announced that the Federal Deposit Insurance Corporation (FDIC) will eliminate "reputational risk" as a factor in bank regulation.
In response, David Sacks, special advisor on AI and cryptocurrency to the White House, commented that this is a victory for the crypto industry. Previously, the vague and subjective "reputational risk" standard had led banks to deny services to legitimate cryptocurrency businesses. Sacks noted that regulatory standards for banks should be more objective and quantifiable, rather than based on potentially unfounded negative publicity.
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