The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation are moving toward a final rule that would define what counts as an "unsafe or unsound practice" in bank supervision, according to a Fox Business crypto reporter’s post on X. The term has long lacked a clear definition and has often depended on the broad discretion of bank examiners. Under the rule described in the post, supervisors would need to tie such findings to actual violations of law or material financial risk. That change is aimed at reducing the chances that banks serving lawful clients, including crypto companies, face pressure based on vague reputational or procedural concerns. The move was described as another significant step toward rolling back "Operation Choke Point 2.0."
The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation are advancing a final rule to define what qualifies as an "unsafe or unsound practice" in bank supervision, according to a Fox Business crypto reporter’s post on X.
The post said the term has gone years without a clear definition and has largely depended on the broad discretion of bank examiners. Under the rule, if supervisors classify a practice as unsafe or unsound, they would need to tie that finding to an actual violation of law or to material financial risk.
The change would reduce the likelihood of banks being pressured over vague reputational or procedural concerns when they provide services to lawful clients, including crypto companies. The rule was described as another important step in unwinding "Operation Choke Point 2.0."
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