Bank Regulatory

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After years of uncertainty and regulation by enforcement, the U.S. may finally be moving toward a more comprehensive framework for the regulation of digital assets. On June 4, 2025, the House Committee on Financial Services held a hearing on American Innovation and the Future of Digital Assets: From Blueprint to a Functional Framework. The hearing followed Committee Chairman French Hill’s introduction of H.R. 3633 — the CLARITY Act of 2025 (the Act) — on May 30, 2025. The Committee is expected to continue its markup of the Act at its June 10, 2025, Full Committee Markup hearing.

Following the Freedom of Information Act (FOIA) litigation brought against the Federal Deposit Insurance Corporation (FDIC) in 2024,[1] on February 5, 2025, the FDIC released hundreds of pages of documents related to its supervision of banks that engaged in, or sought to engage in, crypto-related activities during the last administration. Acting Chairman Hill’s decision to release these documents reflected “a commitment to enhance transparency, beyond what is required by the [FOIA], while also attempting to fulfill the spirit of the FOIA request.”[2]

Wednesday April 30, 2025 at 2:00 p.m.
Washington, D.C.

We are excited to announce that Alex Barrage will be a panelist at the IPA Innovative Payments Conference in Washington, DC, at 2:00 p.m. on Wednesday, April 30, 2025.  “The Future of BaaS Banking” will be moderated by Rebecca Kronlund, Deputy General Counsel, Pathward N.A., and…

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Troutman Pepper Locke’s Securities Investigations + Enforcement Practice

Our Securities Investigations + Enforcement practice has expanded significantly due to our recent merger, enhancing our capabilities nationwide, including in our San Francisco, Dallas, and New York offices. We counsel and defend clients throughout all stages of securities enforcement proceedings, representing a diverse range of clients, including major financial institutions, senior corporate executives, boards of directors, and various entities in the financial services industry. Our team handles investigations by regulatory bodies such as the SEC, FINRA, and the Department of Justice. Leveraging decades of experience and including former key government officials, we develop informed and effective strategies tailored to each client’s unique needs. To read more about our capabilities, please click here.

On April 8, the Office of the Comptroller of the Currency (OCC) officially notified Congress of a significant information security incident involving its email system. This notification, mandated by the Federal Information Security Modernization Act, follows the discovery of unauthorized access to OCC emails and attachments that included highly sensitive information related to the financial condition of federally regulated financial institutions.

Guest contributors: Ashley Harris, Thomas Scott, and Isabelle Corbett Sterling, BakerHostetler

This is the final article in our three-part series focused on a key question: as bank-fintech partnerships continue to play a vital role in driving financial services, how does the industry make this system safer and better?

In this final part of our series, we propose a DLT-based account ledgering model designed to prevent failures like Synapse while offering broader benefits. Previously, we examined Synapse’s collapse, the misplaced trust in its ledgers, and potential regulatory responses,[1] including concerns about the Federal Deposit Insurance Corporation’s (FDIC) proposed recordkeeping rule (Records NPR).[2]

On March 28, the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (together, the federal banking agencies) announced their intent to rescind the 2023 Community Reinvestment Act (CRA) final rule and reinstate the previous CRA framework. This decision comes in light of pending litigation in the Fifth Circuit by various banking trade associations contesting the rules by alleging regulatory overreach. The agencies stated they will continue to work together to promote a consistent regulatory approach to implementation of the CRA.

Last Friday, the Federal Deposit Insurance Corporation (FDIC) announced the rescission of Financial Institution Letter (FIL-16-2022) and issued new guidance clarifying the process for FDIC-supervised institutions to engage in crypto-related activities. The new Financial Institution Letter (FIL-7-2025) represents a 180 degree turn from the prior Chairman’s position, which required prior notification and relevant information by banks seeking to engage in crypto-related activities.