On June 3, the OCC Acting Comptroller, Rodney E. Hood, delivered remarks outlining how he plans to build a resilient and resurgent financial system. The Acting Comptroller emphasized four key strategies: accelerating bank-fintech partnerships; expanding responsible engagement with digital assets; advancing financial inclusion; and modernizing regulation to unleash growth. These strategies aim to adapt the banking system to a rapidly changing financial landscape by embracing innovation, ensuring inclusion, and implementing effective regulation.
Among the steps taken to support these strategies, the OCC (i) issued Interpretive Letter 1183, which removed the requirement for banks to seek prior “non-objection” for permissible digital asset activities and instead will require appropriate risk management frameworks (covered by InfoBytes here), (ii) launched Project REACh to promote financial inclusion, and (iii) engaged in the EGRPRA decennial review process to streamline outdated regulations. The speech also highlighted several other regulatory changes from the new administration to modernize processes including withdrawing proposed climate-related risk management principles for large banks, ceasing examinations for “reputation risk,” and focusing on modernizing capital standards.
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