The U.S. Senate Committee on Banking, Housing and Urban Affairs published a majority release announcing that Chairman Tim Scott introduced the Financial Integrity and Regulation Management Act (FIRM Act), which would eliminate “reputational risk” as a component of regulatory supervision. The proposal is intended to prevent regulators from using reputational risk to pressure banks to deny services to federally legal businesses, positioning the change as a step toward ending “debanking.” The release cited support from the American Bankers Association, the Bank Policy Institute, the Financial Services Forum, the Blockchain Association and the Online Lenders Alliance, as well as groups representing industries described as having been debanked, including the ATM Industry Association, INFiN Alliance, the National Pawnbrokers Association and the National Shooting Sports Foundation. A coalition of 26 state financial officers also backed the bill, and all Republican members of the Banking Committee joined Scott on the legislation.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-03-06
U.S. Senate Committee on Banking, Housing and Urban Affairs chair introduces FIRM Act to remove reputational risk from regulatory supervision
The U.S. Senate Committee on Banking, Housing and Urban Affairs introduced the Financial Integrity and Regulation Management Act by Chairman Tim Scott to remove "reputational risk" from regulatory supervision. The proposal aims to prevent regulators from pressuring banks to deny services to federally legal businesses, addressing "debanking" concerns. The bill is supported by financial and industry groups, a coalition of 26 state financial officers, and all Republican Banking Committee members.