Welcome to Goodwin’s Financial Services News Roundup. Our newsletter highlights important legal, regulatory, and business developments related to financial services and banking.
In this issue
- Federal Bank Regulatory Agencies Issue Joint Statement on Crypto-Asset Safekeeping by Banking Organizations
- Federal Bank Regulatory Agencies Move to Rescind 2023 Community Reinvestment Act Final Rule
- Federal Bank Regulatory Agencies Seek Further Comment on Interagency Effort to Reduce Regulatory Burden
- FDIC Proposes Rule on Establishment and Relocation of Branches and Offices
- FDIC Proposes Rule on Adjusting and Indexing Certain Regulatory Thresholds
- FDIC Proposes Amendments to Guidelines for Appeals of Material Supervisory Determinations
- OCC Removes References to Disparate Impact
- Federal Reserve Proposes Targeted Change to “Well Managed” Test for Large Bank Holding Companies
- CFPB Rescinds State Official Notification Rule
- FinCEN Postpones AML Rule for Investment Advisers
1 Federal Bank Regulatory Agencies Issue Joint Statement on Crypto-Asset Safekeeping by Banking Organizations
On July 14, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Federal Reserve) and Federal Deposit Insurance Corporation (FDIC) released a joint statement (Statement) detailing how existing laws and regulations apply to safekeeping of crypto-assets by banking organizations, indicating that any safekeeping services provided in a fiduciary capacity should be generally managed in the same way as other fiduciary duties. In particular, banking organizations should (1) consider the risks of offering crypto-asset safekeeping services, including, but not limited to, creating appropriate safeguards and the volatility of crypto-assets; (2) maintain control of cryptographic keys and sensitive information; (3) analyze each crypto-asset before engaging in safekeeping; (4) analyze relevant technical, operational, strategic, market, legal, and compliance risks; (5) manage crypto-assets in accordance with the Bank Secrecy Act and Office of Foreign Asset Control requirements; (6) follow third-party risk management guidance when using third-party service providers in connection with safekeeping services; and (7) engage in appropriate audits. Cybersecurity risks present a particularly important risk to banks given the reliance of crypto-assets on technology generally.
2 Federal Bank Regulatory Agencies Move to Rescind 2023 Community Reinvestment Act Final Rule
On July 15, the FDIC Board approved a notice of proposed rulemaking—jointly with Federal Reserve and the OCC—to rescind the Community Reinvestment Act (CRA) final rule issued on October 24, 2023 (2023 CRA Final Rule) and replace it with the prior CRA regulations that were originally adopted by the agencies in 1995 (1995 CRA Regulations), with technical amendments. Because the 2023 CRA Final Rule is tied up in litigation and has not taken effect, banks are already operating under the 1995 CRA Regulations regime; the rollback aims to “provide certainty” and avoid transition costs. The proposal would update 2025 “small bank” asset-size thresholds to reflect inflation and make conforming edits to the FDIC’s regulations implementing the CRA Sunshine Requirements of the Federal Deposit Insurance Act. The contents of, and material referenced in, the financial institution letter apply to all FDIC supervised/insured financial institutions. Comments are due 30 days after publication in the Federal Register.
3 Federal Bank Regulatory Agencies Seek Further Comment on Interagency Effort to Reduce Regulatory Burden
On July 19, the OCC, Federal Reserve, and FDIC issued the final request for public comment under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA). This review targets regulations in three categories: Banking Operations, Capital, and the Community Reinvestment Act (CRA). The EGRPRA aims to identify outdated, duplicative, or overly burdensome rules. Stakeholders are invited to comment on specific rules finalized since the last EGRPRA review. The notice highlights several significant rulemakings, including capital requirements related to CECL, Basel III implementation, the Community Bank Leverage Ratio, and the now rescinded CRA rule. The notice includes a detailed inventory of interagency and agency-specific rules and poses targeted questions about regulatory overlap, flexibility, and burden on smaller institutions. Comments are due 90 days from publication in the Federal Register.
4 FDIC Proposes Rule on Establishment and Relocation of Branches and Offices
On July 15, the FDIC issued a notice of proposed rulemaking to amend procedural requirements for insured state nonmember banks to establish branches or relocate branches or their main office, which would also apply to the relocation of insured branches of foreign banks. The proposal expands establishment and relocation filings that qualify for expedited processing. Once such a filing is made, the FDIC would not have the discretion to remove it from expedited processing, and the filing would be deemed approved within three days of receipt. The proposal also removes the public comment period and newspaper publication requirements for qualifying transactions, and updates related definitions concerning de minimis exceptions and remote service units with the purpose of streamlining branch filing regulatory compliance obligations. Comments must be received by September 16.
5 FDIC Proposes Rule on Adjusting and Indexing Certain Regulatory Thresholds
On July 15, the FDIC issued a notice of proposed rulemaking which would amend certain regulatory thresholds to reflect inflation. Initially, the proposal would increase relevant thresholds for the following FDIC regulations only: 12 CFR Part 303 (Filing Procedures), 12 CFR Part 335 (Securities of Nonmember Banks and State Savings Associations), 12 CFR Part 340 (Restrictions on Sale of Assets of a Failed Institution by the Federal Deposit Insurance Corporation), 12 CFR Part 347 (International Banking), 12 CFR Part 363 (Annual Independent Audits and Reporting Requirements), and 12 CFR Part 380 (Orderly Liquidation Authority). Additionally, the proposal includes an indexing methodology to automatically make such inflation adjustments every two consecutive calendar years or whenever inflation adjustment during a calendar year is greater than 8%. Comments must be received 60 days after publication in the Federal Register.
6 FDIC Proposes Amendments to Guidelines for Appeals of Material Supervisory Determinations
On July 15, the FDIC issued a notice that it is soliciting comment on a proposal to amend the agency’s Guidelines for Appeals of Material Supervisory Determinations. The proposed amendment would replace the current Supervision Appeals Review Committee with an independent, standalone office within the FDIC, known as the Office of Supervisory Appeals, which would consider and decide supervisory appeals and address comments and concerns articulated to the FDIC. This new office is intended to operate more independently, without perceived conflicts of interest, to ensure that individuals that decide on appeals have a deep understanding of banking and the supervisory process. The FDIC anticipates that this new office would be structured similarly to the previous office that was established in 2021. All written comments must be received on or before September 16, 2025.
7 OCC Removes References to Disparate Impact
On July 14, the OCC issued a bulletin that it has removed references to supervising banks for disparate impact liability from the "Fair Lending" booklet of the Comptroller’s Handbook and has instructed its examiners that they should no longer examine for disparate impact. The change was made so that the OCC’s supervisory process for fair lending compliance aligns with Executive Order 14281, Restoring Equality of Opportunity and Meritocracy, which was signed by the President on April 23 and which directs agencies to eliminate the use of disparate impact liability in all contexts.
8 Federal Reserve Proposes Targeted Change to “Well Managed” Test for Large Bank Holding Companies
On July 10, the Federal Reserve issued a notice of proposed rulemaking to revise the component ratings that a firm must receive to be considered “well managed” under the 2018 Large Financial Institution supervisory rating framework.” And please move the link to “notice of proposed rulemaking”. A large bank holding company would qualify as well managed if it has no more than one “deficient 1” rating across the three existing components—capital, liquidity, and governance and controls; any “deficient 2” still disqualifies the firm. Institutions failing to meet the standard would face limitations on certain activities. The Federal Reserve also proposes parallel changes for insurance organizations that it supervises and signals a second phase that could introduce composite ratings and broader updates to other systems. Comments are due 30 days after publication in the Federal Register.
9 CFPB Rescinds State Official Notification Rule
On July 21, the Consumer Financial Protection Bureau (CFPB) rescinded a final rule, previously published on May 21, that would have eliminated procedures by which state officials must notify the CFPB when taking enforcement actions under the Consumer Financial Protection Act. The final rule stipulated that it would be withdrawn if it received significant adverse comments by June 20, and such comments were received within the provided timeline. The CFPB will address specific comments received in a subsequent rulemaking.
10 FinCEN Postpones AML Rule for Investment Advisers
On July 21, the Financial Crimes Enforcement Network (FinCEN) announced its intent to delay implementation of the Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report (SARs) Filing Requirements for Investment Advisers (IA AML Rule) from January 1, 2026, to January 1, 2028. The IA AML Rule would impose Bank Secrecy Act compliance obligations on certain registered and exempt reporting investment advisers, including implementing AML programs, filing SARs, and complying with recordkeeping and customer identification requirements. FinCEN cited ongoing concerns about the rule’s scope, compliance burdens, and coordination with the Investment Adviser Customer Identification Program Rule (IA CIP Rule), which it is developing jointly with the SEC. The agencies expect to align both rules to share a compliance date and allow for coordinated implementation.
Check Out Goodwin’s Latest Industry Insights
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New Client Alert: Further Reform for UK Private Fund
Managers: The Government’s Road Map for Growth in Financial
Services
In our previous alert “ Reforming the UK Regime for Private Fund Managers:
FCA and HMT Papers Point the Way,” we discussed the
proposals of the Financial Conduct Authority (FCA) and His
Majesty’s Treasury (HMT) for reform of alternative investment
fund management (the FCA/HMT AIFM proposals). On 15 July 2025,
Chancellor of the Exchequer Rachel Reeves delivered her Mansion House 2025 speech unveiling
the Leeds Reforms, a programme for financial
services reforms to drive investment and growth in the sector.
Expressed by Reeves as the widest reforms to financial services
regulation in more than a decade, these series of measures include
proposals to reassess the current approach to risk and further
reduce the regulatory burden for businesses. In parallel, the
government, including HMT, has launched the new Financial Services Growth and Competitiveness
Strategy (the strategy), setting out a 10-year vision for
kick-starting growth in the financial services sector. To read
more, click here.
New Fintech Flash: Founder Focus - Eduardo Ortiz Reynaga
at Koltin
Welcome to Founder Focus, our new series in which we
share insights from clients in our global Fintech practice. In this
first issue, David Ajalat, Goodwin partner and Fintech practice
co-chair, interviews Eduardo Ortiz Reynaga, co-founder and CEO of
Koltin. To read more, click here.
Corporate Transparency Act (CTA) Resource
Center
Go-to resource and compliance toolkit.
Bank Failure Knowledge
Visit our knowledge center for timely updates and
analysis on important developments related to bank failures.
Consumer Finance Insights (CFI) Blog
The latest on consumer finance regulation,
litigation, and enforcement.
Fintech Flash
The latest news and developments for the rapidly
evolving fintech industry – which often can change in a
flash.
New Directions: The Trump Administration
Strategic insights and guidance for businesses
navigating shifts in US policy and regulation.
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