FDIC drops 'reputational risk' from bank supervision criteria

David Sacks, Director of Cryptocurrency and AI in the Trump administration, praised the FDIC for removing “reputational risk” as a factor in bank supervision, aligning with a similar move by the OCC. He noted on X that the vague standard had been used to justify debanking lawful crypto firms under Operation Chokepoint 2.0. Sacks emphasized the need for objective, data-driven banking criteria and credited Senator Tim Scott’s leadership through the FIRM Act.