According to Eleanor Terrett, a major factor in debanking has been banks considering 'reputational risk' as directed by regulators when assessing client suitability for banking services. The Federal Reserve included guidelines on this in its Internal Implementation Handbook, influencing banks' client evaluations.

According to paulgrewal.eth, the Act's key provisions include the elimination of all references to reputational risk as a measure to determine the safety and soundness of regulated depository institutions. Additionally, it removes the Federal banking agencies’ ability to create new rules or guidance based on reputational considerations, potentially altering the regulatory landscape for these institutions.

According to Eleanor Terrett, a significant theme of today's hearing is the notion of 'reputational risk,' raising questions about whether regulators are using their discretion to classify risks in a way that adversely affects industries like cryptocurrency and cannabis. This discussion is crucial for traders as it may influence regulatory frameworks and market accessibility for crypto assets.