A Fox Business crypto reporter said on X that the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation are moving toward finalizing a rule that would define what counts as an “unsafe or unsound practice” in bank supervision. The term, the post said, has lacked a clear definition for years and has largely been left to the broad discretion of bank examiners. Under the proposed framework, regulators would need to tie such a finding to an actual legal violation or a material financial risk. That change could limit the ability of supervisors to pressure banks serving lawful customers, including crypto companies, based on vague reputational or procedural concerns. The reporter described the effort as another important step in rolling back “Operation Choke Point 2.0.”
A Fox Business crypto reporter said in a post on X that the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation are moving to finalize a rule defining what constitutes an “unsafe or unsound practice” in bank supervision.
According to the post, the term has gone years without a clear definition and has instead depended largely on the broad discretion of bank examiners.
Under the rule, if supervisors determine that a practice is “unsafe or unsound,” they would need to tie that finding to an actual legal violation or a material financial risk. That would reduce the chance that regulators could pressure banks serving lawful clients, including crypto firms, over vague reputational or procedural issues.
The reporter said the rule would mark another important step in dismantling “Operation Choke Point 2.0.”
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