Senator Tim Scott proposes a bill to exclude "reputational risk" in banking regulations, with the goal of stopping the de-banking of cryptocurrency companies and legal businesses

Senator Tim Scott, Chairman of the Senate Banking Committee, has proposed a bill that excludes the use of "reputational risk" for blocking clients by banks. This decision is aimed at ending the practice of de-banking, where cryptocurrency companies and other legally operating businesses lose access to banking services. Scott believes that such actions by regulators, like the Federal Reserve, violate principles of fairness and hinder the development of innovative industries. The bill has received support from Republicans and is aimed at improving transparency and fairness in the regulation of digital assets.