David Sacks: The FDIC's removal of "reputational risk" as a factor in bank regulation is a huge victory for crypto

US cryptocurrency and artificial intelligence czar David Sacks wrote: "This is a huge victory for cryptocurrencies, and the Federal Deposit Insurance Corporation (FDIC) will follow the Office of the Comptroller of the Currency (OCC) in removing'reputational risk 'as a factor in bank supervision.
'Reputational risk 'may sound good in theory, but it is defined as'the likelihood that negative publicity about an institution's business conduct, whether true or not, will result in a declining customer base, costly litigation, or reduced revenue.' In practice, this vague and subjective standard is used to justify the removal of legitimate crypto businesses through Operation Chokepoint 2.0. Banking standards should be objective and quantitative, not based on the possibility of untrue stories. Thanks to Senator Tim Scott for his leadership on this through the FIRM Act. "