This week’s Compliance News Round Up features updates from the Fed, SBA, FTC, FDIC, NCUA and more! Read on for pertinent information impacting our industry…
FDIC Modifies Resolution Planning Approach for Large Banks
April 21, 2025
Last week, the FDIC reported it had taken action to modify its approach to insured depository institution (IDI) resolution planning. The purpose of this action is to focus the IDI resolution planning process on the operational information most relevant for the FDIC to (1) resolve a large bank through a weekend sale or (2) operate the institution for a short period of time while rapidly marketing the institution
For full resolution submissions during the upcoming submission cycle, the FDIC has exempted IDIs from certain content requirements, such as the requirements to utilize a bridge bank strategy and a hypothetical failure scenario in the plan.
“The 2023 bank failures served as a reminder of how costly and damaging a bridge bank solution can be,” said Acting Chairman Travis Hill. “Today’s action is one step in shifting our approach towards maximizing the likelihood of a lower cost and more stabilizing resolution for large regional banks.” In addition, the FDIC has issued an updated set of frequently asked questions (FAQs) describing the exemptions and clarifying certain expectations. The FDIC is continuing to evaluate other provisions in the IDI Rule, and their applicability to different cohorts of banks, and may issue additional FAQs at a later date.
House Democrats Urge Bessent to Exempt CDFI Fund From Cuts
April 21, 2025
The ABA Banking Journal reported that 88 House Democrats have asked Treasury Secretary Scott Bessent to exempt the Community Development Financial Institutions (CDFI) Fund from a recent executive order that it scale back its operations to the minimum level needed to carry out its statutory obligations.
Fed Publishes Proposal to Modify Capital Plan Rule & Capital Buffer
April 22, 2025
The Federal Reserve Board published in this morning’s Federal Register [90 FR 16843] its previously announced proposal to modify its Capital Plan Rule and Stress Capital Buffer Requirements, which would amend Federal Reserve Regulations Y, LL, and YY (parts 225, 238, and 252). Comments on the proposal will be accepted for 62 days, through June 23, 2025.
FTC Updates COPPA Rule
April 22, 2025
The Federal Trade Commission published a final rule [90 FR 16918] in this morning’s Federal Register amending the Children’s Online Privacy Protection Rule (the “Rule”), consistent with the requirements of the Children’s Online Privacy Protection Act. The amendments to the Rule, which are based on the FTC’s review of public comments and its enforcement experience, include one new definition and modifications to several others, as well as updates to key provisions to respond to changes in technology and online practices. The amendments are intended to strengthen protection of personal information collected from children, and, where appropriate, to clarify and streamline the Rule since it was last amended in January 2013.
The amended rule will be effective on June 23, 2025. Regulated entities have until April 22, 2026, to comply, except for selected provisions, which have earlier compliance dates.
SBA Reinstates Robust Underwriting For 7(a) Loan Program
April 22, 2025
The Small Business Administration announced it will eliminate a package of reduced underwriting standards — the so-called “Do What You Do” standards adopted during the Biden Administration — by issuing a new SOP 50.10.8, which rejects the “Do What You Do” standards and returns previous, more robust, lending criteria.
NCUA Reopens Comment Periods on Two Final Rules
April 23, 2025
The National Credit Union Administration Board has published [90 FR 16999] in the Federal Register a notification of its request for comments on two of its recently published final rules that have not fully taken effect. The Board invites comment on its final rule captioned “Simplification of Share Insurance,” published on September 30, 2024, which takes full effect on December 1, 2026; and the final rule captioned “Succession Planning,” published on December 26, 2024, which takes full effect on January 1, 2026.
The public comment period will allow interested parties to provide comments about issues of fact, law, and policy raised by the two final rules, in accordance with the January 20, 2025, White House memorandum to the Heads of Executive Departments and Agencies, captioned “Regulatory Freeze Pending Review.” Comments on both rules will be accepted through June 23, 2025.
Coinbase Considering Applying for Bank Charter
April 23, 2025
BankingDive reported that Coinbase is considering applying for a federal bank charter, according to a company spokesperson, as cryptocurrency firms seek to capitalize on recent regulatory easing. The article says Coinbase is one of four crypto companies identified by the Wall Street Journal Monday as currently planning to seek a bank charter, alongside crypto custodian BitGo and stablecoin issuers Circle and Paxos.
Last month, the OCC rescinded a Biden-era requirement that banks obtain supervisory non-objection before engaging in crypto-related activities. One benefit crypto firms would see after obtaining a bank charter is direct access to the payments system.
Fed Withdraws Guidance on Crypto-Asset & Dollar Token Activities
April 24, 2025
The Federal Reserve Board announced the withdrawal of guidance for banks related to their crypto-asset and dollar token activities and related changes to its expectations for these activities. These actions ensure the Board’s expectations remain aligned with evolving risks and further support innovation in the banking system.
The Board is rescinding—
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- SR 22-6/CA 22-6: Engagement in Crypto-Asset-Related Activities by Federal Reserve-Supervised Banking Organizations
- SR 23-8 / CA 23-5: Supervisory Nonobjection Process for State Member Banks Seeking to Engage in Certain Activities Involving Dollar Tokens (withdrawn)
The Board and the FDIC are joining the Office of the Comptroller of the Currency in withdrawing from two 2023 statements jointly issued by the federal bank regulatory agencies regarding banks’ crypto-asset activities and exposures. The Board will work with the agencies to consider whether additional guidance to support innovation, including crypto-asset activities, is appropriate.
The aim of our compliance news round ups are to help you stay informed and prepared for the evolving regulatory landscape. If you have any questions about an item in this week’s round-up, consider submitting it to our forum. You can also reach out to the Compliance Resource team at support@mycomplianceresource.com.