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James Stevens

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James is the co-leader of the firm’s Financial Services Industry Group. He has significant experience working with clients across the entire financial services sector, regularly working with public and private companies such as banks, neobanks, marketplace lenders, and other fintech and financial services providers and partners.

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On August 27, the Office of the Comptroller of the Currency (OCC) announced a series of significant actions designed to improve transparency, consistency, and clarity in bank supervision and enforcement. The actions — which include a joint final rule with the Federal Deposit Insurance Corporation (FDIC), two revised policies and procedures manuals (PPMs), and a proposed rulemaking — reflect the agencies’ stated commitment to refocusing supervisory attention on material financial risks over process, documentation, and other nonfinancial concerns. Notably, the Federal Reserve did not join in these actions, and as of the date of this post, has not issued any comparable guidance or commentary.

On July 31, the OCC and FDIC jointly issued a proposed rule to significantly amend their existing Community Reinvestment Act (CRA) regulations that have been in place since 1995.  While the proposal would retain key elements of the regulatory framework, it seeks to better align the regulations with CRA’s statutory mandate of encouraging banks to meet the credit needs of their communities by making “targeted” substantive, technical, and process-oriented changes and narrowing the scope of the rules.  Toward that end, the proposal focuses on the lending test, ensures that community development grants reach the communities they are intended to benefit, and narrows the range of retail banking services the agencies consider for CRA credit by excluding deposit services.  The proposed rule also seeks to provide greater clarity on how a bank receives CRA consideration and to reduce burden on banks (particularly community banks). Notably, the Federal Reserve Board (FRB) did not join the proposal.

On June 16, the Office of the Comptroller of the Currency (OCC) issued a cease and desist order against United Texas Bank, N.A. citing deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) compliance program that resulted in violations of law or regulation. The action is notable not only for its substance, but for its context. The order was issued as a condition of the bank’s conversion to a national bank charter supervised by the OCC.

The Road to Housing Act takes aim at one of the most persistent pain points in community banking: the risk that everyday deposit relationships — particularly those involving custodial arrangements and reciprocal deposit networks — get swept into the regulatory definition of “brokered deposits.” Sections 901 and 902 of the legislation offer meaningful, targeted relief, providing both structural clarity for institutions that rely on payment services arrangements and expanded safe harbors for reciprocal deposit programs. For community banks, these changes could meaningfully expand deposit stability without triggering the heightened regulatory scrutiny that brokered deposit classification brings.

On May 12, the Office of the Comptroller of the Currency (OCC) issued a significant interpretive letter confirming that Fidelity Digital Assets, National Association (the recently converted national trust bank formerly known as Fidelity Digital Assets Service, LLC) is not required to hold state money transmitter licenses to conduct its federally authorized activities. The OCC concluded that the National Bank Act preempts any state money transmitter licensing requirement as applied to a national bank.

On May 20, the Federal Reserve Board issued a proposal (following a December 2025 Request for Information) to create a new, special-purpose “payment account” that eligible financial institutions could use solely to clear and settle payments. At the same time, the Board signaled that Federal Reserve Banks should temporarily pause decisions on certain master account applications from higher-risk institutions while this policy work proceeds.

The federal banking agencies have finalized a significant recalibration of the Community Bank Leverage Ratio (CBLR) framework. In a joint final rule, the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) have lowered the CBLR requirement from 9% to 8% and lengthened the grace period for certain temporary breaches of the CBLR criteria. The rule becomes effective July 1, 2026, and is intended to deliver more meaningful regulatory relief while preserving supervisory comfort with capital adequacy and safety and soundness.

ATLANTA – Troutman Pepper Locke advised DMMS Purchaser, Inc. on the completion of the merger with MC Bancshares, Inc., the holding company for M C Bank & Trust Company (collectively, MCBANK), a Louisiana-chartered state bank. The firm also advised DMMS Purchaser in securing more than $225 million through what is likely one of the largest-ever friends-and-family capital raises for a bank. For more information, see the company’s press release.

On February 25, the Office of the Comptroller of the Currency (OCC) released a 376‑page notice of proposed rulemaking (NPRM) to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act for entities under its jurisdiction. The proposed rule would create a comprehensive framework for “payment stablecoin” issuers supervised by the OCC, foreign payment stablecoin issuers accessing the U.S. market, and certain custody activities by OCC‑regulated banks. The NPRM was published in the Federal Register on March 2, with the 60-day comment period ending on May 1, 2026. The NPRM also poses more than 200 specific questions for public comment on definitions, activities, reserves, liquidity, and other key design choices.

Yesterday, U.S. Representatives Young Kim (R-CA) and Sam Liccardo (D-CA) introduced the Payments Access and Consumer Efficiency Act of 2026 (PACE Act). The bill would create an optional federal framework for large state‑regulated payment companies, giving qualifying firms Office of the Comptroller of the Currency (OCC) supervision and potential direct access to Federal Reserve payment rails, in exchange for bank‑like prudential and customer‑protection standards. It is an early‑stage proposal with uncertain prospects but significant implications for nonbank payments and bank–fintech partnerships.