Tim Scott, chairperson of the US Senate banking committee, has introduced a bill to ban regulators from regulating banks on the grounds of "reputational risk", in response to the crypto industry's accusations that US government entities are excluding them from the financial system. The Republican senator from South Carolina, who introduced the bill on Thursday, said in a statement that the legislation would limit the weaponization of federal banking agencies and eliminate regulators' authority to use "reputational risk" in their regulatory processes. The Fed defines "reputational risk" as: "the risk of losing customers, high litigation costs, or declining revenues as a result of negative public opinion, whether true or false, about an institution's business conduct."