Bank Regulatory

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The Office of the Comptroller of the Currency (OCC) has issued a Notice of Proposed Rulemaking aimed at clarifying the permissible activities of national trust banks. The proposal seeks to amend chartering regulations to explicitly state that national trust companies may engage in nonfiduciary activities, such as asset custody, without being required to obtain a full-service national bank charter. However, the proposed rule does not address what specific nonfiduciary activities are permissible, nor does it indicate whether a national trust company must engage in a minimum level of fiduciary activities.

On December 16, the Federal Deposit Insurance Corporation (FDIC) proposed a new rule that would create a formal, bank‑centric process for issuing payment stablecoins. The rule is designed to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (the GENIUS Act) and would apply to FDIC‑supervised institutions, state nonmember banks and state savings associations, that want to issue payment stablecoins through a subsidiary. With this proposed rule, the FDIC is seeking to “evaluate the safety and soundness of an applicant’s proposed activities based on consideration of statutory factors and support the responsible growth and use of digital assets and related technologies while minimizing the regulatory burden on applicants.”

On December 17, the Office of the Comptroller of the Currency (OCC) proposed new guidance that would significantly streamline how community banks elect to be evaluated under the Community Reinvestment Act (CRA) by providing a simplified strategic plan form. Framed as part of Comptroller Gould’s broader initiative to reduce regulatory burden on community banks, the proposal would make the strategic plan option more accessible, more predictable, and less resource‑intensive for smaller institutions.

On October 29, the Federal Reserve’s Division of Supervision and Regulation issued a Statement of Supervisory Operating Principles that formalizes Vice Chair for Supervision Miki Bowman’s August direction to reset how the Fed supervises banks. The goal of this action is to strengthen supervision by focusing on identifying and acting early on the most important risks to safety and soundness, using proportionate, timely measures. This represents a significant change from prior practice, moving away from process-heavy supervision and toward judgment-driven oversight.

On November 5, the Federal Reserve Board announced that it had finalized revisions to its Large Financial Institution (LFI) rating system and the Insurance Supervisory Framework that change when a firm is considered “well managed” and recalibrated the enforcement stance tied to weaker component ratings. Under the new approach, a firm with at least two component ratings of Broadly Meets Expectations or Conditionally Meets Expectations and no more than one Deficient-1 will be deemed “well managed.” The Board also replaces the automatic presumption of an enforcement action for one or more Deficient-1 ratings with a case-by-case determination, while retaining a presumption of formal action for any Deficient-2. The Insurance Supervisory Framework was updated to remove a reference to reputational risk. The changes become effective 60 days after publication in the Federal Register. Governor Michael Barr dissented, warning the rule lowers safeguards and conflicts with statutory “well managed” requirements.

At The Clearing House Annual Conference, Comptroller of the Currency Jonathan Gould outlined an agency-wide strategy to defend and promote federal preemption across the banking system. As reported by Law360, he emphasized pairing court advocacy with public- and policymaker-facing engagement to rebuild political support that he said has eroded over the past 15 years.

Monday, November 10, 2025

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James Stevens, partner and co-leader of Troutman Pepper Locke’s Financial Services Industry Group, will present “Bank Partnerships and Banking‑as‑a‑Service: New Pressure and New Opportunities” at Practising Law Institute’s Banking Law Institute 2025 on Monday, November 10, 2025. This daylong advanced-level CLE program will cover recent developments impacting the…

Troutman Pepper Locke’s Securities Investigations + Enforcement Practice

Troutman Pepper Locke’s Securities Investigations and Enforcement team counsels and defends clients through all stages of securities enforcement proceedings. Our attorneys have served in key government agencies and regulatory bodies, and bring their insight to bear in each representation. The team includes a former branch chief of…

On October 8, the Office of the Comptroller of the Currency (OCC), in collaboration with the Financial Crimes Enforcement Network (FinCEN), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, released a set of frequently asked questions (FAQs) concerning Suspicious Activity Reports (SARs). These FAQs aim to clarify regulatory requirements related to SARs, assisting financial institutions in fulfilling their compliance obligations while optimizing resources for activities that provide the greatest value to law enforcement and other government users of Bank Secrecy Act (BSA) reporting.