Regulatory Alerts2023-02-07 | 2023-02192Policy Statement on Section 9(13) of the Federal Reserve Act
The Board of Governors of the Federal Reserve System issued a final rule interpreting Section 9(13) of the Federal Reserve Act to establish a rebuttable presumption that state member banks may only engage as principal in activities permissible for national banks. This policy aims to ensure equal regulatory treatment among federally supervised banks and prevent regulatory arbitrage by aligning state member bank permissions with national bank standards and FDIC regulations. The statement also emphasizes that legal permissibility is not sufficient for engagement, requiring banks to maintain robust safety and soundness controls, particularly regarding novel activities like crypto-assets.
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