The Office of the Comptroller of the Currency (OCC) announced the removal of ‘reputational risks’ from its examination manual for supervisors after pressure from Republican lawmakers. This shift aims to prevent banks from denying service to clients in industries seen as distasteful, including cryptocurrency. Acting Comptroller of the Currency, Rodney E. Hood, emphasized that the OCC's examination process focuses on risk management rather than public perception of activities. Proponents of this change argue that it will counteract political influences that lead banks to refuse service to otherwise compliant clients. Despite this modification, banks are still required to demonstrate that a potential client poses a genuine threat to the institution to justify not accepting them. The OCC's recent actions may indicate a retreat from an executive order related to crypto and debanking that was expected from the Trump administration. Moving forward, the OCC's focus will remain on managing risk within the banking sector while allowing more flexibility in client selection.

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