Regulatory Alerts2025-12-17
Federal Reserve Board Issues New Policy Statement on Treatment of Supervised Banks to Facilitate Responsible Innovation
The Federal Reserve Board rescinded its 2023 policy statement and issued a new 2025 policy statement to clarify its Section 9(13) authority over state member banks. The updated framework distinguishes between insured and uninsured institutions, permitting uninsured banks to conduct principal activities that are otherwise impermissible for insured banks, provided they maintain safety and soundness. This differentiated approach replaces the previous uniform standard, enabling supervised banks to pursue novel activities while preserving U.S. financial system stability and facilitating responsible innovation.
Share