According to a report by The Wall Street Journal, Senator Tim Scott, the Republican senator from South Carolina and the leader of the Senate Banking Committee, has introduced a new bill aimed at prohibiting regulatory agencies from considering so-called "reputational risk" factors when assessing banking practices, in order to end the "de-banking" phenomenon targeting cryptocurrency companies and conservatives.
Scott stated that regulatory agencies' concerns about potential reputational damage to banks from their clients are fueling the "de-banking" phenomenon, where banks are intentionally avoiding certain specific businesses. This issue has gained attention due to the advocacy of cryptocurrency companies as well as recent comments by former President Trump, who criticized U.S. banks and JPMorgan Chase for closing bank accounts of conservative individuals.
