OCC addresses technology advances in rulemaking issuances
On June 4, the OCC announced two rulemaking issuances: a Notice of Proposed Rulemaking (NPR) that is intended to eliminate outdated regulatory requirements, and an Advance Notice of Proposed Rulemakings (ANPR) seeking comments on banking issues related to digital technology and innovation.
Specifically, the NPR would amend 12 CFR part 7 to update or eliminate outdated regulatory requirements and clarify and codify recent OCC interpretations related to the modern financial system. Among other things, the changes would include (i) codifying interpretations which permit covered institutions to engage in certain tax equity finance transactions; (ii) clarifying anti-takeover provisions; and (iii) expanding the ability of national banks to choose corporate governance provisions under state law.
The ANPR seeks comment on regulations 12 CFR part 7, subpart E and 12 CFR part 155, and, among other things, asks commenters to discuss (i) whether, in light of technological advances, the legal standards of both regulations are flexible enough; (ii) whether there are digital banking activities not covered by these rules that the OCC should address; (iii) the barriers or obstacles to further adoption of crypto-related activities in the banking industry; and (iv) the potential implications of new payments technologies and processes for the banking industry.
Comments on both issuances are due August 3.