Eleanor Terrett Confirms New Rule on Unsafe Banking Practices

Eleanor Terrett confirmed that the U.S. Office of the Comptroller of the Currency (USOCC) and the Federal Deposit Insurance Corporation (FDIC) are finalizing a rule that defines ‘unsafe or unsound practices’ in banking supervision. This definition has been vague for years, relying heavily on bank examiners’ discretion. The new rule could provide clearer standards for banks, particularly those serving crypto companies, impacting their regulatory environment.

What Happened

The announcement from Eleanor Terrett indicates a pivotal regulatory change that could reshape the banking landscape for cryptocurrency firms. The USOCC and FDIC’s move to finalize this rule will require that alleged unsafe practices be tied to actual legal violations or material financial risks. This shift aims to reduce the use of vague reputational concerns that have previously pressured banks into limiting services for lawful customers, including those in the crypto sector. Such regulatory clarity may encourage banks to engage more openly with digital asset businesses.

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