Republican senators in the U.S. have proposed a bill aimed at ending the "de-banking" of crypto companies by regulatory agencies

ChainCatcher news, according to The Wall Street Journal, U.S. Senate Banking Committee leader and South Carolina Republican Senator Tim Scott has proposed a new bill aimed at prohibiting regulators from considering so-called "reputational risk" factors when assessing banking practices, in order to end the phenomenon of "de-banking" against cryptocurrency companies and conservatives.

Scott stated that regulators' concerns about potential reputational damage to banks from customers are fueling the "de-banking" phenomenon, where banks intentionally avoid certain specific businesses. This issue has gained attention due to advocacy from cryptocurrency companies and recent comments from President Trump, who criticized U.S. banks and JPMorgan for closing the bank accounts of conservatives.