Unknown. Final rule; rescission of a policy statement; issuance of a policy statement

5,026 words·~23 min read·/register/2025/12/22/2025-23548·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2025-12-22.xml --- 90 243 Monday, December 22, 2025 Contents Agency Toxic Agency for Toxic Substances and Disease Registry NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59829-59831 2025-23599 Agriculture Agriculture Department See Food Safety and Inspection Service See Foreign Agricultural Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59786 2025-23631 Request for Information:

Refined Sugar; Correction, 59786 2025-23604 Consumer Financial Protection Bureau of Consumer Financial Protection NOTICES Privacy Act; Systems of Records, 59800-59807 2025-23610 2025-23611 2025-23612 Safety Enviromental Enforcement Bureau of Safety and Environmental Enforcement NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Permit to Modify and Supporting Documentation, 59865-59866 2025-23572 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 59831-59834 2025-23601 2025-23602 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59834-59837 2025-23506 2025-23507 2025-23582 Statement of Organization, Functions, and Delegations of Authority, 59837-59838 2025-23588 Children Children and Families Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:

Office of Community Services Community Economic Development Performance Progress Report, 59838-59839 2025-23546 Office of Refugee Resettlement Cash and Medical Assistance Program Quarterly Report on Expenditures and Obligations, 59839-59840 2025-23592 Coast Guard Coast Guard RULES Safety Zone: Stage Nine Entertainment, Sacramento NYE Fireworks, CA, 59740 2025-23551 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Comptroller Comptroller of the Currency PROPOSED RULES Community Reinvestment Act:

Simplified Strategic Plan Process for Community Banks, 59744-59764 2025-23547 Corporation Corporation for National and Community Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: AmeriCorps State and National Project Progress Reports, 59807-59808 2025-23585 Drug Drug Enforcement Administration NOTICES Decision and Order: David Halvorson, M.D, 59869-59871 2025-23545 Importer, Manufacturer or Bulk Manufacturer of Controlled Substances;

Application, Registration, etc.: IsoSciences, LLC, 59872-59873 2025-23621 Myonex LLC, 59872 2025-23619 National Center for Natural Products Research, 59871 2025-23503 Navinta LLC, 59871-59872 2025-23620 Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Accrediting Agencies Reporting Activities for Institutions and Programs-Database of Accredited Postsecondary Institution and Programs, 59808 2025-23576 Energy Department Energy Department See Federal Energy Regulatory Commission NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 59808-59809 2025-23618 Environmental Protection Environmental Protection Agency PROPOSED RULES Petition to Delist Hazardous Air Pollutant: 2-Butoxyethyl Benzoate, 59767-59783 2025-23566 Federal Aviation Federal Aviation Administration PROPOSED RULES Airworthiness Directives: Restricted Category Model CH-47D Helicopters, 59764-59767 2025-23613 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Certification of Airports, 59933-59935 2025-23600 Hazardous Materials Training Requirements, 59932-59933 2025-23514 Petition for Exemption;

Summary: Pratt and Whitney; Correction, 59933 2025-23556 Federal Communications Federal Communications Commission PROPOSED RULES Facilitating More Intensive Use of Upper Microwave Spectrum, 59784-59785 2025-23625 Use of Additional Frequency Bands for NGSO Satellites to Communicate with Earth Stations in Motion, 59783-59784 2025-23638 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59822-59823, 59825-59826 2025-23586 2025-23589 2025-23590 2025-23591 Charter Amendments, Establishments, Renewals and Terminations:

World Radiocommunication Conference Advisory Committee, 59825 2025-23557 Hearings, Meetings, Proceedings, etc.: 2027 World Radiocommunication Conference Advisory Committee, Informal Working Group 1, 2, 3, and 4, 59823-59825 2025-23558 Federal Energy Federal Energy Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 59809-59813 2025-23560 Application: Corpus Christi Liquefaction, LLC, CCL Midscale 8-9, LLC, 59817-59819 2025-23496 Forza Pipeline LLC, Bull Run Pipeline LLC, 59819-59821 2025-23501 Authorization for Continued Project Operation:

Brown Bear II Hydro, Inc., 59813 2025-23494 Fiske Hydro Inc., 59821 2025-23490 Northern States Power Co., 59813-59814, 59816 2025-23489 2025-23497 Combined Filings, 59809, 59816-59817 2025-23559 2025-23563 Environmental Issues: Texas Eastern Transmission, LP, Proposed Kosciusko Compressor Station Replacement Project, 59814-59816 2025-23502 Federal Maritime Federal Maritime Commission NOTICES Investigation: Conditions Affecting Shipping in the Foreign Trade and Denial of Entry of Vessels into Spanish Ports, 59826-59828 2025-23606 Federal Reserve Federal Reserve System RULES Policy Statement on the Federal Reserve Act, 59731-59733 2025-23548 NOTICES Change in Bank Control:

Acquisitions of Shares of a Bank or Bank Holding Company, 59828-59829 2025-23580 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 59828 2025-23578 Food Safety Food Safety and Inspection Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Permit to Obtain Specimens of Condemned or Other Inedible Materials from Official Establishments, 59788-59789 2025-23550 Permit to Transport Undenatured Inedible Meat Products, 59786-59788 2025-23549 Foreign Agricultural Foreign Agricultural Service NOTICES World Trade Organization Agricultural Quantity-Based Safeguard Trigger Levels, 59789-59790 2025-23603 Foreign Assets Foreign Assets Control Office NOTICES Sanctions Action, 59938-59944 2025-23583 2025-23587 2025-23593 Geological Geological Survey NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: National Land Remote Sensing Education, Outreach and Research Activity, 59852-59853 2025-23512 Health and Human Health and Human Services Department See Agency for Toxic Substances and Disease Registry See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Children and Families Administration See Health Resources and Services Administration See National Institutes of Health Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Ending the HIV Epidemic in the U.S. Initiative Triannual Report, 59845-59847 2025-23605 Rural Communities Opioid Response Program Performance Measures, 59843-59844 2025-23577 Substance Use Disorder Treatment and Recovery Loan Repayment Program and the Pediatric Specialty Loan Repayment Program, 59841-59843 2025-23581 The Maternal, Infant, and Early Childhood Home Visiting Program Performance Measurement Information System, 59844-59845 2025-23571 Recommended Uniform Screening Panel:

Addition of Duchenne Muscular Dystrophy, 59840-59841 2025-23573 Addition of Metachromatic Leukodystrophy, 59847-59848 2025-23574 Homeland Homeland Security Department See Coast Guard NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Program Analysis and Evaluation Office, Stakeholder Engagement Division Convenings Evaluation, 59851-59852 2025-23504 Interior Interior Department See Bureau of Safety and Environmental Enforcement See Geological Survey See Land Management Bureau See National Park Service See Ocean Energy Management Bureau Internal Revenue Internal Revenue Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 59944 2025-23552 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Aluminum Foil from the Sultanate of Oman, 59792-59793 2025-23628 Certain Softwood Lumber Products from Canada; Correction, 59791-59792 2025-23495 2025-23498 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.:

Certain Antibody Drug Conjugates and Components Thereof and Products Containing the Same, 59867-59868 2025-23515 Certain Low-Profile Microwave-Hood Combination Products, 59866-59867 2025-23516 Certain Smart Wearable Devices, Systems, and Components Thereof, 59868-59869 2025-23584 Justice Department Justice Department See Drug Enforcement Administration NOTICES Proposed Consent Decree: CERCLA, 59873-59874 2025-23505 Labor Department Labor Department See Labor-Management Standards Office See Occupational Safety and Health Administration RULES Nondisplacement of Qualified Workers under Service Contracts;

Rescission of Regulations, 59734-59740 2025-23626 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Permanent Employment Certification, 59874 2025-23555 Labor Management Standards Labor-Management Standards Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Protections for Transit Workers under Urban Program, 59874-59876 2025-23553 Land Land Management Bureau NOTICES Decisions:

Declining to Adopt Proposed Notice to Lessees No. 5, 59853 2025-23561 Maritime Maritime Administration NOTICES Use of Foreign-Built Small Passenger Vessel in United States Coastwise Trade: M/V Assets Entities, 59935-59936 2025-23609 M/V Reef N Catch, 59937-59938 2025-23614 M/V Tuna de Luna, 59936-59937 2025-23615 Millenium Millennium Challenge Corporation NOTICES Hearings, Meetings, Proceedings, etc.: Advisory Council, 59878 2025-23511 Report on the Selection of Eligible Countries for Fiscal Year 2026, 59877-59878 2025-23616 National Institute National Institutes of Health NOTICES Hearings, Meetings, Proceedings, etc.:

Center for Scientific Review, 59850 2025-23594 2025-23595 2025-23596 National Institute of Biomedical Imaging and Bioengineering, 59849-59850 2025-23598 National Institute of Environmental Health Sciences, 59848-59849 2025-23499 National Institute on Aging, 59848 2025-23597 National Library of Medicine, 59850 2025-23500 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries off West Coast States: Modification of the West Coast Salmon Fisheries; Inseason Actions Nos. 1-5, 59740-59743 2025-23634 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Alaska Region Bering Sea and Aleutian Islands Crab Economic Data Reports, 59797-59798 2025-23565 NOAA Space-Based Data Collection System Agreements, 59796-59797 2025-23562 West Coast Region Permit Family of Forms, 59793-59795 2025-23564 Federal Consistency Appeal: BJG Properties LLC, 59797 2025-23509 Georgina Clemente, 59795-59796 2025-23508 National Park National Park Service NOTICES Inventory Completion: Florida Department of State, Tallahassee, FL, 59860-59861 2025-23544 Tennessee Department of Environment and Conservation, Division of Archaeology, Nashville, TN, 59854, 59858-59862 2025-23542 2025-23540 2025-23541 Tennessee Department of Environment and Conservation, Division of Archaeology, Nashville, TN;

East Tennessee State University, Johnson City, TN; and University of Tennessee, Department of Anthropology, Knoxville, TN, 59862-59863 2025-23543 Repatriation of Cultural Items: California Department of Transportation, Fresno, CA, 59854-59855 2025-23537 Sheldon Jackson Museum, Sitka, AK, 59863-59864 2025-23538 Tennessee Department of Environment and Conservation, Division of Archaeology, Nashville, TN, 59863 2025-23539 University of Georgia, Laboratory of Archaeology, Athens, GA, 59856-59858 2025-23535 Wisconsin Historical Society, Madison, WI, 59855-59856 2025-23536 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Addendum to the Memorandum of Understanding:

Department of Energy (August 28, 1992); Oak Ridge, Tennessee Properties, 59876-59877 2025-23554 Ocean Energy Management Ocean Energy Management Bureau NOTICES Oil and Gas Lease Sale: Alaska Outer Continental Shelf, Cook Inlet Planning Area, Oil and Gas Lease Sale 258, 59864-59865 2025-23617 Patent Patent and Trademark Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Law School Clinic Certification Program, 59798-59800 2025-23624 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 59878-59880 2025-23491 2025-23608 Securities Securities and Exchange Commission NOTICES Application:

Sardis Credit Opportunities Fund and Sardis Group, LLC, 59885-59886 2025-23493 Exemption Application: Multi-Class ETF Fund Exemptive Relief under the Investment Company Act, 59914-59918 2025-23492 Self-Regulatory Organizations; Proposed Rule Changes: Cboe BZX Exchange, Inc., 59888-59890 2025-23528 Cboe C2 Exchange, Inc., 59882-59885 2025-23527 Cboe EDGX Exchange, Inc., 59895-59897 2025-23519 Cboe Exchange, Inc., 59890-59892, 59897-59909, 59928-59930 2025-23517 2025-23518 2025-23529 2025-23531 2025-23533 2025-23534 Nasdaq BX, Inc., 59886-59888, 59924-59926 2025-23520 2025-23524 Nasdaq PHLX LLC, 59892-59894, 59909-59912, 59926-59928 2025-23522 2025-23523 2025-23525 New York Stock Exchange LLC, 59880-59882 2025-23530 NYSE American LLC, 59918-59920 2025-23526 Texas Stock Exchange LLC, 59920-59924 2025-23532 The Nasdaq Stock Market LLC, 59913-59914 2025-23521 Small Business Small Business Administration NOTICES Interest Rate, 59930 2025-23607 State Department State Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Adoptive Family Relief Act Refund Application, 59930-59931 2025-23627 Culturally Significant Objects Imported for Exhibition: Collaborating in Conflict: The Yeats Family and the Public Arts Exhibition, 59931 2025-23622 Giorgio Griffa: Paths in the Forest, 59932 2025-23623 Lives and Literacy in Ancient Egypt, 59931-59932 2025-23629 Transportation Department Transportation Department See Federal Aviation Administration See Maritime Administration Treasury Treasury Department See Comptroller of the Currency See Foreign Assets Control Office See Internal Revenue Service Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 90 243 Monday, December 22, 2025 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 208 [Docket No. OP-1876] RIN 7100-AH14 Policy Statement on Section 9(13) of the Federal Reserve Act AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; rescission of a policy statement; issuance of a policy statement. SUMMARY: The Board of Governors of the Federal Reserve System (Board) is rescinding its 2023 policy statement interpreting section 9(13) of the Federal Reserve Act

(FRA)(2023 Policy Statement), which set out a presumption for how the Board would exercise its authority under that provision and elaborated on supervisory expectations at that time related to “novel and unprecedented” activities. The Board is also withdrawing from the record the Supplementary Information that accompanied the 2023 Policy Statement, which discussed specific crypto-asset activities. The Board is replacing the 2023 Policy Statement with a new policy statement on section 9(13) of the FRA, which is designed to facilitate innovation by state member banks in a manner that is consistent with bank safety and soundness and preserving the stability of the U.S. financial system. The new policy statement also provides guidance to uninsured state member banks and uninsured state-chartered bank applicants for membership who may seek to engage in activities as principal that are not permissible for insured state member banks. DATES: This final rule and policy statement is effective on December 22, 2025. FOR FURTHER INFORMATION CONTACT: Asad Kudiya, Associate General Counsel,

(202)475-6358 and Kelley O'Mara, Special Counsel,

(202)430-0911, Legal Division; or Juan Climent, Deputy Associate Director,

(202)872-7526 and Jeff Ernst, Manager,

(202)369-9439, Division of Supervision and Regulation, Board of Governors of the Federal Reserve System, 20th Street and C Streets NW, Washington, DC 20551. For users of TTY-TRS, please call 711 from any telephone, anywhere in the United States. SUPPLEMENTARY INFORMATION: I. Background Under section 9(13) of the Federal Reserve Act (FRA), the Board of Governors of the Federal Reserve System (Board) “may limit the activities of State member banks and subsidiaries of State member banks in a manner consistent with section 24 of the Federal Deposit Insurance Act [(FDIA)].” 1 Section 24 prohibits an insured State bank from engaging “as principal in any type of activity that is not permissible for a national bank unless—(A) the [Federal Deposit Insurance Corporation (FDIC)] has determined that the activity would pose no significant risk to the Deposit Insurance Fund; and

(B)the State bank is, and continues to be, in compliance with applicable capital standards prescribed by the appropriate Federal banking agency.” 2 In 2023, the Board issued a policy statement interpreting section 9(13) (2023 Policy Statement), setting out a presumption for how the Board intended to use its authority under the provision and elaborating on supervisory expectations at that time regarding “novel and unprecedented” activities. 3 1 12 U.S.C. 330 (as amended by Federal Deposit Insurance Corporation Improvement Act of 1991 § 303(b), Public Law 102-242, 105 Stat. 2236, 2353). 2 12 U.S.C. 1831a(a). *See* 12 CFR part 362. 3 88 FR 7848 (Feb. 7, 2023); 12 CFR 208.112. At this time, the Board has concluded that it is appropriate to rescind the 2023 Policy Statement and replace it with a new policy statement (2025 Policy Statement) describing the Board's intention to interpret section 9(13) of the FRA in a manner designed to facilitate innovation by state member banks, consistent with bank safety and soundness and preserving the stability of the U.S. financial system. The Board is also withdrawing from the record portions of the Supplementary Information (2023 Preamble) discussing specific crypto-asset activities. The 2025 Policy Statement

(i)articulates the Board's commitment to the principle of “same activity, same risks, same regulation” and the reciprocal principle of “different activity, different risks, different regulation” in a manner designed to facilitate innovation by state member banks, and

(ii)provides further guidance to uninsured state member banks and uninsured state-chartered bank applicants for membership who may seek to engage in activities as principal that are not permissible for insured state member banks. II. Rescission of the 2023 Policy Statement In January 2023, the Board published the 2023 Policy Statement, 4 which set out a rebuttable presumption that the Board would exercise its discretion under section 9(13) of the FRA to limit the authority of state member banks to engage as principal in only those activities that are permissible for national banks—in each case, subject to the terms, conditions, and limitations placed on national banks with respect to the activity—unless those activities are permissible for state-chartered banks by federal statute or under part 362 of the FDIC's regulations. The 2023 Policy Statement also

(i)reiterated to state member banks that legal permissibility is a necessary, but not sufficient, condition to establish that a state member bank may engage in a particular activity;

(ii)reminded state member banks that they must at all times conduct their business and exercise their powers with due regard to safety and soundness, including by having in place appropriate internal controls and information systems; and

(iii)highlighted particular risks associated with, and supervisory expectations for, “novel and unprecedented” activities. Furthermore, the 2023 Preamble discussed how the 2023 Policy Statement would presumptively apply to particular sets of facts related to certain crypto-asset activities at the time. 4 *See* Press Release: Federal Reserve Board issues policy statement to promote a level playing field for all banks with a federal supervisor, regardless of deposit insurance status (Jan. 27, 2023), *available at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230127a.htm.* The 2023 Policy Statement was part of a series of Board or Board staff issuances in 2022 and 2023 related to crypto-asset activities and supervisory expectations for such activities. Recently, those issuances have been rescinded or withdrawn. 5 The Board believes these statements are no longer appropriate given its evolving understanding of the risks of the crypto-asset sector and its desire to facilitate innovation in a manner consistent with safety and soundness and preserving the stability of the U.S. financial system. Similarly, at this time, the Board has determined it should rescind the 2023 Policy Statement in its entirety, including related guidance in the 2023 Preamble. 5 *See, e.g.,* Press Release: Federal Reserve Board announces the withdrawal of guidance for banks related to their crypto-asset and dollar token activities and related changes to its expectations for these activities (Apr. 24, 2025), *available at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250424a.htm;* Press Release, Federal Reserve Board announces it will sunset its novel activities supervision program and return to monitoring banks' novel activities through the normal supervisory process (Aug. 15, 2025), *available at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250815a.htm.* II. 2025 Policy Statement The Board continues to believe it is beneficial to provide transparency to the public regarding its interpretation of section 9(13) of the FRA, as well as how it intends to use its authority under the provision. Therefore, the Board is replacing its 2023 Policy Statement with the 2025 Policy Statement. A. Legal Authority Under section 9(13) of the Act, the Board “may limit the activities of State member banks and subsidiaries of State member banks in a manner consistent with section 24 of the [FDIA].” 6 Section 24 prohibits an insured State bank from engaging “as principal in any type of activity that is not permissible for a national bank unless—(A) the [FDIC] has determined that the activity would pose no significant risk to the Deposit Insurance Fund; and

(B)the State bank is, and continues to be, in compliance with applicable capital standards prescribed by the appropriate Federal banking agency.” 7 6 12 U.S.C. 330 (as amended by Federal Deposit Insurance Corporation Improvement Act of 1991 § 303(b), Public Law 102-242, 105 Stat. 2236, 2353). 7 12 U.S.C. 1831a(a). *See* 12 CFR part 362. The National Bank Act enumerates certain powers that national banks may exercise and authorizes national banks to exercise “all such incidental powers as shall be necessary to carry on the business of banking.” 8 Section 7.1000 of the OCC's regulations identifies the criteria that the OCC uses to determine whether an activity is authorized as part of, or incidental to, the business of banking under 12 U.S.C. 24(Seventh). 9 If a national bank has not been authorized by federal law, including the National Bank Act, to engage in an activity, then national banks are not permitted to engage in such activity. 8 12 U.S.C. 24(Seventh). 9 12 CFR 7.1000. B. Application The 2025 Policy Statement applies to insured and uninsured state member banks. Insured state member banks, however, are already required by section 24 of the FDIA and part 362 of the FDIC's regulations to seek approval from the FDIC when seeking to conduct an activity as principal that is not permissible for national banks. As established under those provisions, insured state member banks may not engage as principal in any type of activity that is not permissible for a national bank unless—(i) the FDIC has determined that the activity would pose no significant risk to the Deposit Insurance Fund; and

(ii)the insured state member bank is, and continues to be, in compliance with applicable capital standards prescribed by the Board. 10 10 12 U.S.C. 1831a(a)(1). If an activity is authorized for national banks to conduct as principal, it is generally permissible for insured state member banks to conduct as principal, provided the activity is permitted under relevant state law and the bank adheres to the terms, conditions, and limitations placed on national banks by the OCC with respect to the activity. Furthermore, if the FDIC, by rule, permits insured state-chartered banks to engage in the activity as principal even if that activity is not permissible for national banks, it is generally permissible for insured state member banks to engage in the activity as principal, provided the activity is permitted under state law. If there is no authority for an insured state-chartered bank to engage in a particular activity as principal under federal statute or part 362 of the FDIC's regulations, an insured state member bank should apply to the FDIC for permission to engage in the activity as principal under part 362 of the FDIC's regulations. 11 Furthermore, if the FDIC has permitted only specific insured state-chartered bank(s) to engage in the activity as principal, other insured state-chartered banks must similarly apply to the FDIC for specific permission. 11 *See* 12 CFR part 303, subpart G. An uninsured state member bank may not engage in any activity as principal that is not authorized for national banks or insured state-chartered banks, unless the Board has provided otherwise by regulation, order, or other means, or the uninsured state member bank has received the permission of the Board under section 208.3(d)(2) of the Board's Regulation H. 12 Under that provision, a state member bank may not, without the permission of the Board, change the general character of its business or the scope of the corporate powers it exercised at the time of its admission to membership. 13 To the extent firms have inquiries regarding legal permissibility, the Board will engage with the FDIC and OCC as appropriate, consistent with this policy statement. 12 12 CFR 208.3(d)(2). 13 Uninsured state member banks must receive approval from the Board for permission to conduct an activity as principal, if the FDIC has permitted the activity only for specific insured state bank(s). In such case, the fact that the FDIC has approved at least one insured state-chartered bank to engage in the activity would be highly pertinent to the Board's analysis. In determining whether to grant an uninsured state member bank or an uninsured state-chartered bank applicant for membership permission to engage in an activity as principal that is not permissible for insured state member banks, the Board, under the 2025 Policy Statement, will consider whether the uninsured state member bank would be capable of engaging in such activity in a manner that is consistent with bank safety and soundness and preserving the stability of the U.S. financial system. The Board may consider

(i)the regulatory framework to which the uninsured state member bank is subject;

(ii)the risks presented by the proposed activities and the bank's planned internal controls framework to address such risks; and

(iii)how the institution would mitigate the risks otherwise addressed by deposit insurance and FDIC resolution. Among other things, the Board may consider whether the uninsured state member bank has a financial profile that is at least as effective as deposit insurance in minimizing the risk of deposit runs and contagion. This may, for example, be demonstrated if the uninsured state member bank has

(i)a sufficient amount of total loss-absorbing capacity (consisting of capital and long-term debt) that is subordinate to the bank's deposits and other short-term liabilities; or

(ii)high-quality liquid assets equal to 100 percent of the bank's demand deposits and other short-term liabilities. The Board may also consider whether the uninsured state member bank has a resolution plan that demonstrates how the bank could be recapitalized or wound down in an orderly manner if it fails to remain a viable going concern. III. Regulatory Analyses This rule clarifies how the Board interprets and intends to exercise its discretion under section 9(13) of the Act. It is not itself binding on state member banks. Accordingly, the provisions of the Administrative Procedure Act

(APA)regarding notice of proposed rulemaking and opportunity for public participation are not applicable. 14 14 5 U.S.C. 553(b)(4)(A). Because no notice of proposed rulemaking is required to be issued, or has been issued, in connection with this rule, it is not a “rule” for purposes of the Regulatory Flexibility Act, and that act, therefore, does not apply. 15 15 *See* 5 U.S.C. 601(2). In accordance with the Paperwork Reduction Act of 1995 (PRA), 16 the Board may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget control number. The Board has reviewed the rule and has determined that it contains no collections of information as defined in the PRA. 16 44 U.S.C. 3501 *et seq.* Section 722 of the Gramm-Leach-Bliley Act 17 requires the federal banking agencies to use plain language in all proposed and final rules published after January 1, 2000. The Board has sought to present this rule in a simple and straightforward manner. 17 12 U.S.C. 4809. The APA does not require the Board to delay the effective date of the rule. 18 Accordingly, the rule is effective December 22, 2025. 18 *See* 5 U.S.C. 553(d)(2). List of Subjects in 12 CFR Part 208 Accounting, Agriculture, Banks, banking, Confidential business information, Consumer protection, Crime, Currency, Federal Reserve System, Flood insurance, Insurance, Investments, Mortgages, Reporting and recordkeeping requirements, Securities. Authority and Issuance For the reasons stated in the preamble, the Board of Governors of the Federal Reserve System amends part 208 of chapter II of title 12 of the Code of Federal Regulations as follows: PART 208—MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (REGULATION H) 1. The authority citation for part 208 continues to read as follows: Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12), 1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3905-3909, 5371, and 5371 note; 15 U.S.C. 78b, 78I(b), 78 *l* (i), 780-4(c)(5), 78q, 78q-1, 78w, 1681s, 1681w, 6801, and 6805; 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128. Subpart J—Interpretations 2. Revise § 208.112 to read as follows: § 208.112. Policy statement on section 9(13) of the Federal Reserve Act.

(a)Under section 9(13) of the Federal Reserve Act (12 U.S.C. 330), a State member bank may exercise all corporate powers granted it by the State in which it was created except that the Board may limit the activities of State member banks and subsidiaries of State member banks in a manner consistent with section 24 of the Federal Deposit Insurance Act.” The Board interprets this provision as vesting in the Board the authority to prohibit or otherwise restrict State member banks and their subsidiaries from engaging as principal in any activity (including acquiring or retaining any investment) that is not permissible for a national bank, unless the activity is permissible for State-chartered banks by Federal statute or under section 24(a) of the Federal Deposit Insurance Act.

(b)The Board generally believes that the same activity, presenting the same risks, should be subject to the same regulatory framework, and that a different activity, presenting different risks, should be subject to a different regulatory framework. Consistent with this principle, the Board intends to interpret section 9(13) of the Federal Reserve Act (12 U.S.C. 330) to facilitate innovation by insured and uninsured State member banks in a manner consistent with safety and soundness of State member banks and preserving the stability of the U.S. financial system.

(c)In alignment with this principle, the Board generally presumes that it will exercise its discretion under section 9(13) of the Federal Reserve Act (12 U.S.C. 330) to limit the authority of insured State member banks and their subsidiaries to engage in any activity as principal to those activities that are permissible for national banks—in each case, subject to the terms, conditions, and limitations placed on national banks with respect to the activity—unless those activities are permissible for insured State-chartered banks under section 24 of the Federal Deposit Insurance Act.

(d)If an activity is authorized for national banks to conduct as principal, it is generally permissible for State member banks to conduct as principal, provided that it is permitted under relevant State law and the bank adheres to the terms, conditions, and limitations placed on national banks by the OCC with respect to the activity.

(e)If the FDIC, by rule, permits insured State-chartered banks to engage in any activity as principal under section 24 of the Federal Deposit Insurance Act that is not permissible for national banks, it is generally permissible for State member banks to engage in that activity, provided it is permitted under applicable State law. If there is no authority for an insured State-chartered bank to engage in a particular activity as principal under Federal statute or part 362 of the FDIC's regulations, that activity must be authorized for insured depository institutions by the FDIC under section 24 of the Federal Deposit Insurance Act (12 U.S.C. 1831a) and the insured State member bank must be in compliance with applicable capital requirements issued by the Board.

(f)An uninsured State member bank may not engage in any activity as principal that is not authorized for national banks or insured State-chartered banks, unless the Board has provided otherwise by regulation, order, or other means, or the uninsured State member bank has received the permission of the Board under § 208.3(d)(2) of the Board's Regulation H. In determining whether to grant an uninsured state member bank or an uninsured State-chartered bank applicant for membership permission to engage in an activity as principal that is not permissible for insured State member banks, the Board will consider whether the uninsured State member bank would be capable of engaging in such activity in a safe and sound manner and in a manner that is consistent with preserving the stability of the U.S. financial system. By order of the Board of Governors of the Federal Reserve System. Benjamin W. McDonough, Deputy Secretary of the Board. [FR Doc. 2025-23548 Filed 12-19-25; 8:45 am]

Connectionstraces to 13

Traces to 13 documents

U.S. Code