Federal banking regulators have taken steps to improve clarity surrounding digital banking activities, including crypto-assets and digitalization. Find out about some of the latest regulatory moves in this respect and more in this roundup:
OCC issues guidance on crypto-asset activities
The Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1184 to clarify permissible activities related to crypto-asset custody and execution services for national banks and federal savings associations. The letter includes details on activities banks may outsource to third parties related to crypto assets, including custody and execution services, subject to appropriate third-party risk management practices. This authority was also addressed in OCC Interpretive Letters 1170 and 1183. Find more information here.
OCC seeks information on community bank digitalization
The OCC published a request for information (RFI) seeking comments regarding challenges and barriers community banks encounter while working to adopt and implement digital banking solutions. The OCC noted the RFI was not intended to impose any obligations or define any rights, and it is not an interpretation of any regulation or statute. Comments are due by June 26.Learn more here.
Banking agencies update host state loan-to-deposit ratios
The federal banking agencies released updated host state loan-to-deposit ratios, as required by the Banking Holding Company Act and the Federal Deposit Insurance Act. These figures show the ratio of a state’s total loans compared to its total deposits for all banks that recognize that state as their home state. These updated ratios will replace those issued in May 2024. By law, a bank is generally prohibited from establishing or acquiring branches outside of its home state primarily for the purpose of acquiring additional deposits to ensure that interstate bank branches do not take deposits from a community without the bank also reasonably helping to meet the credit needs of its community. Get more information here.
Federal Reserve, HUD nominees advance to full Senate
Federal Reserve Board Member Michelle Bowman took a step closer to becoming the Fed’s vice chair for supervision after the Senate Banking Committee voted to advance her nomination. The community banking sector has expressed strong support for Bowman taking over the role vacated by Michael Barr earlier this year, when he stepped down from the vice chair position but remained on the board. The committee also advanced two nominations for leadership roles at the Department of Housing and Urban Development (HUD) – Andrew Hughes, to be the agency’s deputy secretary and David Woll to serve as its general counsel. John Hurley’s nomination to be the Treasury Department’s under secretary for terrorism and financial crimes also advanced to the full Senate for consideration.
HUD secretary touts agency achievements
HUD Secretary Scott Turner has been touting his department’s achievements during the first 100 days of the Trump administration in public appearances and through news outlets. Turner has emphasized HUD’s renewed focus on its core mission and its efforts to deliver tangible results for Americans and their communities. Read more here.