Sen. Tim Scott and banking committee Republicans introduced a new bill known as the FIRM Act, which seeks to prevent debanking decisions related to concerns over reputational risk.

Senate Banking Committee Chair Tim Scott (R-S.C.) unveiled legislation Thursday taking aim at debanking. Debanking — the closure of accounts that banks consider risky, often with little notice or explanation — has become a key issue for Republicans,

The Senate Banking Committee voted Thursday to advance legislation seeking to strike "reputational risk" from the toolkit of U.S. regulators considering vulnerabilities at financial institutions. Why it matters: Supporters of the FIRM Act argue that it removes a subjective standard open to abuse by administrations looking to target disfavored industries.

The Senate Banking Committee is considering bills to create a regulatory framework for dollar-denominated stablecoins and to prevent debanking due to "reputational risk."

The Senate Banking Committee voted Thursday to advanced legislation to create a regulatory framework for payment stablecoins. The movement on the GENIUS Act marks a key win for the Trump administration and Republican lawmakers,