OCC AND FDIC TO CLARIFY BANK REGULATIONS, LINKING PRACTICES TO ILLEGAL OR SIGNIFICANT FINANCIAL RISKS

On 28 August, Fox Business encryption journalist wrote on platform X that the U.S. Monetary Supervisory Agency and the Federal Deposit Insurance Corporation were moving forward to finalize a rule defining “unsafe or unsound practices” in bank supervision. The term has not been clearly defined for many years and relies mainly on the extensive discretion of bank examiners. According to the rule, when the regulator determines that the practice is “unsafe or unsound”, it must be linked to the actual offence or significant financial risk, thereby reducing the likelihood of pressure being exerted on banks serving legitimate clients, including encryption companies, with vague reputations or procedural issues. The rule marks another important step towards the further elimination of Operation Breakpoint 2.0。