U.S. Regulators Advance Rule to Clarify Definition of "Unsafe or Unsound Practices," Barrier to Banking for Crypto Firms Could Be Removed

BlockBeats News, August 28th. According to crypto journalist Eleanor Terrett, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are advancing a rulemaking process to clarify the definition of "unsafe or unsound practices" in bank regulation.

It is reported that this term has long lacked a clear definition, giving bank examiners significant discretion. The new rule will require regulators to link such determinations to actual illegal behavior or significant financial risks, preventing pressure on banks based on vague reputational or procedural reasons and compelling them to reject legitimate customers (including crypto businesses).