Coinbase has submitted a letter to U.S. regulators advocating for the removal of the 'reputational risk' standard in bank regulation. The cryptocurrency exchange argues that during the Biden administration, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) used 'reputational risk' to exert pressure on legitimate businesses. Coinbase criticizes the concept as vague, subjective, and difficult to quantify, stating it does not directly correlate with financial risk or illegal activity and can be misused as a tool for political preferences. Therefore, it should not be a basis for bank regulation.