OCC and FDIC Move to Clarify Bank Regulatory Rules, Linking Practices to Illegal Conduct or Significant Financial Risk

Odaily News: Fox Business crypto reporter stated on the X platform that the U.S. Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation are advancing toward finalizing a rule to define "unsafe or unsound practices" in bank regulation. The term has remained loosely defined for years, relying largely on the broad discretion of bank examiners. Under the rule, regulators must tie determinations that a practice is "unsafe or unsound" to actual violations of law or significant financial risk, thereby reducing the likelihood of pressuring banks—including those serving legitimate clients such as crypto companies—over vague reputational or procedural concerns. The rule marks another important step toward dismantling "Operation Choke Point 2.0."