OCC and FDIC Finalize Rule on 'Unsafe or Unsound Practice', Crypto Industry Eyes Regulatory Shift
The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) have finalized a rule that defines 'unsafe or unsound practice' in banking. The rule takes effect 60 days after publication in the Federal Register.
While not explicitly addressing cryptocurrency, the emphasis on material financial risks has caught the attention of the digital-asset industry. Crypto companies and industry groups have long argued that some banks restricted or ended relationships with digital-asset businesses due to regulatory pressure rather than demonstrated financial risk.
The new rule does not require banks to provide services to cryptocurrency companies. It also does not remove existing requirements relating to bank safety and soundness, anti-money-laundering obligations, sanctions compliance, or consumer protection.