Major US banks lobby the offices of the Secretary of Currency (OCC) and have established national regulatory standards that override rules for national issues that affect operations.
Citing those familiar with the issue, Reuters reports that banks are seeking uniform federal guidelines for activities such as lending funds, bond issuance, providing investment banking services and implementing anti-money laundering (AML) valuations.
According to Reuters sources, the goal is to limit the impact individual states have on these operations.
Sources say the push coincides with efforts by the Trump administration to strengthen the federal government’s preemption following a 2024 U.S. Supreme Court ruling that affirms federal law takes priority over national banks’ state laws.
The initiative is further supported by recent executive orders aimed at standardizing “off” practices where banks may deny services based on political or religious standards.
Lobbying groups such as the Institute for Banking Policy and the American Banking Association have approved national standards calls.
The Institute for Bank Policy says,
“We strongly support the nation’s preemption and believe that federal fair access laws or regulations are a wise move to address account closures in a consistent way across all states.”
However, regulators in some states argue that local oversight is essential to maintain consumer protection, promote market integrity, and adjust regulations to suit community needs.
Tension arises as several states, including Texas, Florida and California, have enacted rules that restrict banks’ actions based on social or political issues, prompting national banks to seek clearer federal guidelines.
Generated Image: Midjourney
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