OCC and FDIC Advance Rules Clarifying "Unsafe or Unsound Practices" Definition; Barriers for Crypto Enterprises to Access Banking Services Expected to Be Eliminated

According to reporter Eleanor Terrett (@EleanorTerrett), the U.S. Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are advancing a rulemaking proposal to clarify the definition of "unsafe or unsound practices" in bank regulation. The term has long lacked a precise definition, granting examiners broad discretion. The new rule will require regulators to tie such determinations to actual violations or significant financial risks, preventing them from pressuring banks under vague reputational or procedural grounds to deny service to legitimate customers, including crypto businesses.