The Federal Deposit Insurance Corporation (FDIC) is considering a new rule to limit the use of 'reputation risk' in supervisory actions, a move that could significantly impact crypto banking. Acting Chair Travis Hill advocates for this change to address concerns over 'politicized or unlawful debanking.' The proposed rule aims to restrict when examiners can cite reputation concerns to limit bank services, potentially altering how banks engage with digital asset activities. This development follows previous instances where regulators advised banks to halt crypto activities due to reputation risks. The FDIC board is set to discuss the proposal in an upcoming meeting, with a public comment period expected to follow, allowing stakeholders to express their views on the potential changes.