Prohibition on the Use of Reputation Risk by Regulators (final rule; effective 2026-06-09), 91 FR 18279, FR Doc 2026-06947 (Part 2 of 2)

Bitcoin Research — Law, Regulation, Markets & Origins (2026)

Banking

2

2026-04-10

Document text

Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

OCC uses December 31, 2024, to determine size
                                            may indirectly benefit covered FDIC-                      The Paperwork Reduction Act of                      because a ‘‘financial institution’s assets are
                                                                                                                                                          determined by averaging the assets reported on its
                                            supervised IDIs. Finally, FDIC-                         1995 20 (PRA) states that no agency may               four quarterly financial statements for the preceding
                                                                                                                                                          year.’’ See footnote 8 of the SBA’s Table of Size
                                              19 Call Report data, September 30, 2025.                20 44 U.S.C. 3501–3521.                             Standards.

                                       VerDate Sep<11>2014   15:47 Apr 09, 2026   Jkt 268001   PO 00000   Frm 00016   Fmt 4700   Sfmt 4700   E:\FR\FM\10APR1.SGM   10APR1
                                                                  Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Rules and Regulations                                         18291

                                            the rule will have a significant impact                   expenses. The FDIC believes that effects             E. Riegle Community Development and
                                            on more than 30 OCC-supervised small                      in excess of one or more of these                    Regulatory Improvement Act of 1994
                                            entities. To evaluate the impact of the                   thresholds typically represent
                                                                                                                                                              Pursuant to section 302(a) of the
                                            rule on small entities, the OCC assessed                  significant economic impacts for FDIC-
                                                                                                                                                           Riegle Community Development and
                                            whether the cost savings would be                         supervised institutions.
                                                                                                                                                           Regulatory Improvement Act (RCDRIA)
                                            greater than 5 percent of the small                          A commenter asserted of the proposed              of 1994,26 in determining the effective
                                            entity’s total annual salaries and                        rule that, if adopted, it would likely               date and administrative compliance
                                            benefits or greater than 2.5 percent of                   cause small institutions to make                     requirements for new regulations that
                                            the small entity’s total non-interest                     substantial revisions to their policies,
                                            expense for 30 or more small entities.                                                                         impose additional reporting, disclosure,
                                                                                                      documentation, training, and vendor                  or other requirements on insured
                                               Analysis of internal OCC MRA data                      management.
                                            indicates that there were fewer than 30                                                                        depository institutions, the OCC and
                                                                                                         However, for the avoidance of doubt,              FDIC must consider, consistent with
                                            MRAs that had indicated reputation risk                   the FDIC reiterates that the final rule
                                            was a primary risk. Because fewer than                                                                         principles of safety and soundness and
                                                                                                      applies only to the activities of the                the public interest (1) any
                                            30 MRAs per year list reputation risk as                  FDIC. The final rule does not impose
                                            a primary concern, we conclude that the                                                                        administrative burdens that the final
                                                                                                      any obligations on FDIC-supervised                   rule would place on depository
                                            removal of reputation risk from                           institutions, and institutions would not
                                            supervision would not be likely to result                                                                      institutions, including small depository
                                                                                                      need to take any action in response to               institutions and customers of depository
                                            in significant MRA-related cost savings                   this rule. Institutions’ internal policies
                                            for more than 30 small entities per year.                                                                      institutions and (2) the benefits of the
                                                                                                      and controls, training, and other                    final rule. This rulemaking would not
                                            Furthermore, any cost savings for the                     elements that may refer to reputation
                                            MRAs listed as a secondary concern                                                                             impose any reporting, disclosure, or
                                                                                                      risk are not directly affected by the final          other requirements on insured
                                            would be likely de minimis for 30 or
                                                                                                      rule. As such, the final rule does not               depository institutions. Therefore,
                                            more small entities.
                                               Finally, because we do not expect that                 have any direct economic impact on                   section 302(a) does not apply to this
                                            there will be scope for significant cost                  FDIC-supervised small entities.                      final rule.
                                            savings from the removal of reputation                       Based on the foregoing, the FDIC
                                                                                                      certifies that the final rule will not have          F. Congressional Review Act
                                            risk for reasons unrelated to MRAs, we
                                            conclude that the rule would not have                     a significant economic impact on a                      Subtitle E of the Small Business
                                            a significant impact on a substantial                     substantial number of FDIC-supervised                Regulatory Enforcement Fairness Act of
                                            number of small entities for the                          small entities.                                      1996 (also known as the Congressional
                                            purposes of the RFA.                                      C. Plain Language                                    Review Act) defines a ‘‘major rule’’ as a
                                               FDIC:                                                                                                       rule that the Administrator of the OMB’s
                                               The Regulatory Flexibility Act (RFA)                      Section 722 of the Gramm-Leach                    Office of Information and Regulatory
                                            generally requires an agency, in                          Bliley Act 25 requires the Federal                   Affairs (OIRA) finds has resulted in or
                                            connection with a final rule, to prepare                  banking agencies to use plain language               is likely to result in:
                                            and make available for public comment                     in all proposed and final rules                         1. An annual effect on the economy of
                                            a final regulatory flexibility analysis that              published after January 1, 2000. The                 $100 million or more;
                                            describes the impact of the final rule on                 agencies invited comment on the use of                  2. A major increase in costs or prices
                                            small entities.23 However, a final                        plain language and have sought to                    for consumers, individual industries,
                                            regulatory flexibility analysis is not                    present the final rule in a simple and               Federal, State, or local government
                                            required if the agency certifies that the                 straightforward manner.                              agencies, or geographic regions; or
                                            final rule will not have a significant                    D. Unfunded Mandates Reform Act of                      3. Significant adverse effects on
                                            economic impact on a substantial                          1995                                                 competition, employment, investment,
                                            number of small entities. The Small                                                                            productivity, innovation or on the
                                            Business Administration (SBA) has                            Consistent with the Unfunded                      ability of U.S.-based enterprises to
                                            defined ‘‘small entities’’ to include                     Mandates Reform Act (UMRA), the                      compete with foreign-based enterprises
                                            banking organizations with total assets                   review considers whether the mandates                in domestic and export markets.27
                                            of less than or equal to $850 million.24                  imposed by the rule may result in an
                                                                                                                                                              The OMB has determined that the
                                            Generally, the FDIC considers a                           expenditure of $100 million or more by
                                                                                                                                                           final rule is not a major rule for
                                            significant economic impact to be a                       State, local, and tribal governments, or
                                                                                                                                                           purposes of the Congressional Review
                                            quantified effect in excess of 5 percent                  by the private sector, in any one year,
                                                                                                                                                           Act.
                                            of total annual salaries and benefits or                  adjusted annually for inflation
                                            2.5 percent of total noninterest                          (currently $187 million).                            G. Executive Orders 12866 and 14192
                                                                                                         The OCC estimates that the proposal               1. Executive Order 12866
                                              23 5 U.S.C. 601 et seq.                                 would not require additional
                                              24 The SBA defines a small banking organization
                                                                                                      expenditure from OCC-regulated entities                Section 3(f) of Executive Order 12866
                                            as having $850 million or less in assets, where an        nor will it require expenditures of $100             defines a ‘‘significant regulatory action’’
                                            organization’s ‘‘assets are determined by averaging                                                            as a regulatory action that is likely to
                                            the assets reported on its four quarterly financial       million or more by State, local, and
                                            statements for the preceding year.’’ See 13 CFR           tribal governments, or by other segments             result in a rule that may:
                                            121.201 (as amended by 87 FR 69118, effective             of the private sector. Thus, the OCC                   (1) Have an annual effect on the
                                            December 19, 2022). In its determination, the ‘‘SBA       believes the rule is not a significant rule          economy of $100 million or more or
                                            counts the receipts, employees, or other measure of
                                                                                                      for the purposes of the UMRA.                        adversely affects in a material way the

lotter on DSK8BHNXB4PROD with RULES1
                                            size of the concern whose size is at issue and all
                                            of its domestic and foreign affiliates.’’ See 13 CFR      Accordingly, the OCC has not prepared                economy, a sector of the economy,
                                            121.103. Following these regulations, the FDIC uses       the written statement described in                   productivity, competition, jobs, the
                                            an insured depository institution’s affiliated and        section 202 of the UMRA.                             environment, public health or safety, or
                                            acquired assets, averaged over the preceding four
                                            quarters, to determine whether the insured
                                                                                                        25 Public Law 106–102, section 722, 113 Stat.        26 12 U.S.C. 4802(a).
                                            depository institution is ‘‘small’’ for the purposes of
                                            RFA.                                                      1338, 1471 (1999); 12 U.S.C. 4809.                     27 5 U.S.C. 804(2).

                                       VerDate Sep<11>2014    15:47 Apr 09, 2026   Jkt 268001   PO 00000   Frm 00017   Fmt 4700   Sfmt 4700   E:\FR\FM\10APR1.SGM   10APR1
                                            18292                Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Rules and Regulations

                                            State, local, or tribal governments or                  DEPARTMENT OF THE TREASURY                              (2) Terminate a contract or
                                            communities;                                            Office of the Comptroller of the                      discontinue doing business with a third
                                              (2) Create a serious inconsistency or                 Currency                                              party, including an institution-affiliated
                                            otherwise interfere with an action taken                                                                      party, on the basis of reputation risk;
                                                                                                    12 CFR Chapter I                                        (3) Sign a contract or initiate doing
                                            or planned by another agency;
                                                                                                    Authority and Issuance                                business with a third-party, including
                                              (3) Materially alter the budgetary                                                                          an institution-affiliated party, on the
                                            impact of entitlements, grants, user fees,                For the reasons set forth in the                    basis of reputation risk; or
                                            or loan programs or the rights and                      preamble, and under the authority of 12                 (4) Modify the terms or conditions
                                            obligations of recipients thereof; or                   U.S.C. 93a, chapter I of title 12 of the              under which it contracts or does
                                                                                                    Code of Federal Regulations is amended                business with a third party, including
                                              (4) Raise novel legal or policy issues
                                                                                                    as follows:                                           an institution-affiliated party, on the
                                            arising out of legal mandates, the
                                            President’s priorities, or the principles               PART 1—INVESTMENT SECURITIES                          basis of reputation risk.
                                            set forth in Executive Order 12866.                                                                             (c) The OCC will not require, instruct,
                                                                                                    ■ 1. The authority citation for part 1                or encourage an institution, or any
                                              OIRA has determined that this final                                                                         employee of an institution, to terminate
                                                                                                    continues to read as follows:
                                            rule is a significant action under                                                                            a contract with, discontinue doing
                                            Executive Order 12866.                                    Authority: 12 U.S.C. 1 et seq., 24 (Seventh),
                                                                                                    and 93a.                                              business with, sign a contract with,
                                            2. Executive Order 14192                                                                                      initiate doing business with, modify the
                                                                                                    § 1.5    [Amended]                                    terms under which it will do business
                                               Executive Order 14192, titled                        ■ 2. In § 1.5, amend paragraph (a) by                 with a person or entity, or take any
                                            ‘‘Unleashing Prosperity Through                         removing the phrase ‘‘compliance,                     action or refrain from taking any action
                                            Deregulation,’’ was issued on January                   strategic, and reputation risks’’ and                 on the basis of the person’s or entity’s
                                            31, 2025. Section 3(a) of Executive                     adding in its place the phrase                        political, social, cultural, or religious
                                            Order 14192 requires an agency, unless                  ‘‘compliance, and strategic risks’’.                  views or beliefs, constitutionally
                                            prohibited by law, to identify at least                                                                       protected speech, or solely on the basis
                                            ten existing regulations to be repealed                 PART 4—ORGANIZATION AND                               of the person’s or entity’s involvement
                                            when the agency publicly proposes for                   FUNCTIONS, AVAILABILITY AND                           in politically disfavored but lawful
                                            notice and comment or otherwise                         RELEASE OF INFORMATION,                               business activities perceived to present
                                            promulgates a new regulation. In                        CONTRACTING OUTREACH                                  reputation risk.
                                            furtherance of this standard, section 3(c)              PROGRAM, POST-EMPLOYMENT                                (d) The prohibitions in paragraphs (a)
                                            of Executive Order 14192 requires that                  RESTRICTIONS FOR SENIOR                               through (c) of this section only apply to
                                            the new incremental costs associated                    EXAMINERS                                             actions taken on the bases described in
                                                                                                                                                          paragraphs (a) through (c) of this
                                            with new regulations shall, to the extent               ■ 3. The authority citation for part 4                section, and the prohibition in
                                            permitted by law, be offset by the                      continues to read as follows:                         paragraph (c) of this section shall not
                                            elimination of existing costs associated                                                                      apply with respect to persons, entities,
                                                                                                       Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1,
                                            with at least ten prior regulations. This                                                                     or jurisdictions sanctioned by the Office
                                                                                                    93a, 161, 481, 482, 484(a), 1442, 1462a, 1463,
                                            rule is considered a deregulatory action                1464 1817(a), 1818, 1820, 1821, 1831m,                of Foreign Assets Control.
                                            under Executive Order 14192.                            1831p–1, 1831o, 1833e, 1867, 1951 et seq.,              (e) Nothing in this section shall
                                                                                                    2601 et seq., 2801 et seq., 2901 et seq., 3101        restrict the OCC’s authority to
                                            List of Subjects                                        et seq., 3401 et seq., 5321, 5412, 5414; 15           implement, administer, and enforce the
                                            12 CFR Part 1                                           U.S.C. 77uu(b), 78q(c)(3); 18 U.S.C. 641,
                                                                                                    1905, 1906; 29 U.S.C. 1204; 31 U.S.C.
                                                                                                                                                          provisions of subchapter II of chapter 53
                                                                                                    5318(g)(2), 9701; 42 U.S.C. 3601; 44 U.S.C.           of title 31, United States Code.
                                              Banks, banking, National banks,
                                                                                                    3506, 3510; E.O. 12600 (3 CFR, 1987 Comp.,              (f) The OCC will not take any
                                            Reporting and recordkeeping                                                                                   supervisory action or other adverse
                                                                                                    p. 235).
                                            requirements, Securities.                                                                                     action against an institution, a group of
                                                                                                    ■ 4. Add subpart G, consisting of § 4.91,
                                            12 CFR Part 4                                                                                                 institutions, or the institution-affiliated
                                                                                                    to read as follows:
                                                                                                                                                          parties of any institution that is
                                              Administrative practice and                           Subpart G—Enforcement and Supervision                 designed to punish or discourage an
                                            procedure, Freedom of information,                      Standards Sec. 91 Prohibition on use of               individual or group from engaging in
                                            Individuals with disabilities, Minority                 reputation risk.                                      any lawful political, social, cultural, or
                                            businesses, Organization and functions                                                                        religious activities, constitutionally
                                                                                                    Subpart G—Enforcement and
                                            (Government agencies), Reporting and                                                                          protected speech, or, for political
                                                                                                    Supervision Standards
                                            recordkeeping requirements, Women.                                                                            reasons, lawful business activities that
                                                                                                    § 4.91   Prohibition on use of reputation             the OCC or any of its personnel disagree
                                            12 CFR Part 30                                          risk.                                                 with or disfavor.
                                              Administrative practice and                             (a) The OCC will not criticize,                       (g) The following definitions apply in
                                            procedure, National banks, Reporting                    formally or informally, or take adverse               this section:
                                            and recordkeeping requirements.                         action against an institution on the basis              Adverse action includes:
                                                                                                    of reputation risk.                                     (i) Any negative feedback delivered by
                                            12 CFR Part 302                                           (b) The OCC will not require, instruct,             or on behalf of the OCC to the

lotter on DSK8BHNXB4PROD with RULES1
                                                                                                    or encourage an institution, or any                   supervised institution, including in a
                                              Administrative practice and                           employee of an institution, to:                       report of examination or a formal or
                                            procedure, Banks, Banking.                                (1) Refrain from contracting or doing               informal enforcement action;
                                            12 CFR Part 364                                         business with a third party, including                  (ii) A downgrade, or contribution to a
                                                                                                    an institution-affiliated party, on the               downgrade, of any supervisory rating,
                                               Banks, Banking, Information.                         basis of reputation risk;                             including, but not limited to:

                                       VerDate Sep<11>2014   15:47 Apr 09, 2026   Jkt 268001   PO 00000   Frm 00018   Fmt 4700   Sfmt 4700   E:\FR\FM\10APR1.SGM   10APR1
                                                                 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Rules and Regulations                                         18293

                                               (A) Any rating under the Uniform                     Appendix B to Part 30 [Amended]                       an institution-affiliated party, on the
                                            Financial Institutions Rating System (or                                                                      basis of reputation risk;
                                                                                                    ■ 6. Amend appendix B to part 30 in
                                            any comparable rating system);                                                                                  (2) Terminate a contract or
                                               (B) Any rating under the Uniform                     supplement A, section III, by:                        discontinue doing business with a third
                                                                                                    ■ a. Removing the third sentence; and
                                            Interagency Consumer Compliance                                                                               party, including an institution-affiliated
                                                                                                    ■ b. Removing the word ‘‘Effective’’ and
                                            Rating System;                                                                                                party, on the basis of reputation risk;
                                               (C) Any rating under the Uniform                     adding in its place ‘‘Timely and                        (3) Sign a contract or initiate doing
                                            Rating System for Information                           effective’’.                                          business with a third-party, including
                                            Technology; and                                         Appendix C to Part 30 [Amended]                       an institution-affiliated party, on the
                                               (D) Any rating under any other rating                                                                      basis of reputation risk; or
                                            system;                                                 ■ 7. Amend appendix C to part 30 by:                    (4) Modify the terms or conditions
                                               (iii) A denial of a licensing                        ■ a. In section I:
                                                                                                                                                          under which it contracts or does
                                            application;                                            ■ i. In paragraph (i), removing
                                                                                                                                                          business with a third party, including
                                               (iv) Inclusion of a condition on any                 ‘‘reputation,’’; and                                  an institution-affiliated party, on the
                                            licensing application or other approval;                ■ ii. In paragraph (vi), removing the last
                                                                                                                                                          basis of reputation risk.
                                               (v) Imposition of additional approval                sentence; and                                           (c) The FDIC will not require, instruct,
                                            requirements;                                           ■ b. In section II, paragraph (B)(1),
                                                                                                                                                          or encourage an institution, or any
                                               (vi) Any other heightened                            removing ‘‘reputation,’’.
                                                                                                                                                          employee of an institution, to terminate
                                            requirements on an activity or change;                  Appendix D to Part 30 [Amended]                       a contract with, discontinue doing
                                               (vii) Any adjustment of the                                                                                business with, sign a contract with,
                                            institution’s capital requirement; and                  ■ 8. Amend appendix D to part 30,
                                                                                                                                                          initiate doing business with, modify the
                                               (viii) Any action that negatively                    section II, paragraph (B), by removing                terms under which it will do business
                                            impacts the institution, or an                          the phrase ‘‘compliance risk, strategic               with a person or entity, or take any
                                            institution-affiliated party, or treats the             risk, and reputation risk’’ and adding in             action or refrain from taking any action
                                            institution differently than similarly                  its place the phrase ‘‘compliance risk,               on the basis of the person’s or entity’s
                                            situated peers.                                         and strategic risk’’.                                 political, social, cultural, or religious
                                               Doing business with means:
                                                                                                    FEDERAL DEPOSIT INSURANCE                             views or beliefs, constitutionally
                                               (i) The bank providing any product or
                                                                                                    CORPORATION                                           protected speech, or solely on the basis
                                            service, including account services;
                                               (ii) The bank contracting with a third                                                                     of the person’s or entity’s involvement
                                                                                                    12 CFR Chapter III
                                            party for the third party to provide a                                                                        in politically disfavored but lawful
                                            product or service;                                     Authority and Issuance                                business activities perceived to present
                                               (iii) The bank providing discounted or                 For the reasons set forth in the                    reputation risk.
                                            free products or services to customers or               preamble, the FDIC proposes to amend                    (d) The prohibitions in paragraphs (a)
                                            third parties, including charitable                     parts 302 and 364 of chapter III of title             through (c) of this section only apply to
                                            activities;                                             12 of the Code of Federal Regulations as              actions taken on the bases described in
                                               (iv) The bank entering into,                         follows:                                              paragraphs (a) through (c) of this
                                            maintaining, modifying, or terminating                                                                        section, and the prohibition in
                                            an employment relationship; or                          PART 302—REGULATIONS                                  paragraph (c) of this section shall not
                                               (v) Any other similar business activity              GOVERNING BANK SUPERVISION                            apply with respect to persons, entities,
                                            that involves a bank client or a third                                                                        or jurisdictions sanctioned by the Office
                                            party.                                                  ■ 9. The authority citation for part 302              of Foreign Assets Control.
                                               Institution means an entity for which                continues to read as follows:                           (e) Nothing in this section shall
                                            the OCC makes or will make                                Authority: 5 U.S.C. 552; 12 U.S.C. 1818,            restrict the FDIC’s authority to
                                            supervisory or licensing determinations                 1819(a) (Seventh and Tenth), 1831p–1.                 implement, administer, and enforce the
                                            either solely or jointly.                                                                                     provisions of subchapter II of chapter 53
                                                                                                    ■ 10. Revise the heading for part 302 as
                                               Institution-affiliated party means the                                                                     of title 31, United States Code.
                                                                                                    set forth above.                                        (f) The FDIC will not take any
                                            same as in section 3 of the Federal
                                                                                                    ■ 11. Add a heading for subpart A,                    supervisory action or other adverse
                                            Deposit Insurance Act (12 U.S.C.
                                                                                                    consisting of §§ 302.1, 302.2, and 302.3,             action against an institution, a group of
                                            1813(u)).
                                               Reputation risk means any risk,                      to read as follows:                                   institutions, or the institution-affiliated
                                            regardless of how the risk is labeled by                                                                      parties of any institution that is
                                                                                                    Subpart A—Use of Supervisory
                                            the institution or regulators, that an                                                                        designed to punish or discourage an
                                                                                                    Guidance
                                            action or activity, or combination of                                                                         individual or group from engaging in
                                            actions or activities, or lack of actions or            ■ 12. Add subpart B, consisting of                    any lawful political, social, cultural, or
                                            activities, of an institution could                     § 302.100, to read as follows:                        religious activities, constitutionally
                                            negatively impact public perception of                                                                        protected speech, or, for political
                                            the institution for reasons not clearly                 Subpart B—Prohibition on Use of                       reasons, lawful business activities that
                                            and directly related to the financial or                Reputation Risk by Regulators                         the FDIC or any of its personnel
                                            operational condition of the institution.                                                                     disagrees with or disfavors.
                                                                                                    § 302.100    Prohibitions.                              (g) Definitions.
                                            PART 30—SAFETY AND SOUNDNESS                              (a) The FDIC will not criticize,                      Adverse action includes:
                                            STANDARDS                                               formally or informally, or take adverse                 (i) Any negative feedback delivered by
                                                                                                    action against an institution on the basis            or on behalf of the FDIC to the

lotter on DSK8BHNXB4PROD with RULES1
                                            ■ 5. The authority citation for part 30                 of reputation risk.                                   supervised institution, including in a
                                            continues to read as follows:                             (b) The FDIC will not require,                      report of examination or a formal or
                                              Authority: 12 U.S.C. 1, 93a, 371, 1462a,              instruct, or encourage an institution, or             informal enforcement action;
                                            1463, 1464, 1467a, 1818, 1828, 1831p–1,                 any employee of an institution, to:                     (ii) A downgrade, or contribution to a
                                            1881–1884, 3102(b) and 5412(b)(2)(B); 15                  (1) Refrain from contracting or doing               downgrade, of any supervisory rating,
                                            U.S.C. 1681s, 1681w, 6801, and 6805(b)(1).              business with a third party, including                including, but not limited to:

                                       VerDate Sep<11>2014   15:47 Apr 09, 2026   Jkt 268001   PO 00000   Frm 00019   Fmt 4700   Sfmt 4700   E:\FR\FM\10APR1.SGM   10APR1
                                            18294                Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Rules and Regulations

                                               (A) Any rating under the Uniform                     Appendix B to Part 364 [Amended]                      available online at https://
                                            Financial Institutions Rating System (or                                                                      www.regulations.gov. Additional
                                                                                                    ■ 14. Amend appendix B to part 364 in
                                            any comparable rating system);                                                                                information about dockets generally,
                                               (B) Any rating under the Uniform                     supplement A, section III, by:
                                                                                                    ■ a. Removing the third sentence; and
                                                                                                                                                          along with instructions for visiting the
                                            Interagency Consumer Compliance                         ■ b. Removing the word ‘‘Effective’’ and
                                                                                                                                                          docket in-person, is available at https://
                                            Rating System;                                          adding in its place ‘‘Timely and                      www.epa.gov/dockets.
                                               (C) Any rating under the Uniform                                                                           FOR FURTHER INFORMATION CONTACT:
                                                                                                    effective’’.
                                            Rating System for Information                                                                                 Charles Smith, Registration Division
                                            Technology;                                             Jonathan V. Gould,                                    (7505T), Office of Pesticide Programs,
                                               (D) Any rating under any other rating                Comptroller of the Currency.                          Environmental Protection Agency, 1200
                                            system;                                                 Federal Deposit Insurance Corporation.                Pennsylvania Ave. NW, Washington, DC
                                               (iii) A denial of a filing pursuant to
                                                                                                    By order of the Board of Directors.                   20460–0001; main telephone number:
                                            Part 303 of the FDIC’s regulations;
                                                                                                      Dated at Washington, DC, on April 7, 2026.          (202) 566–1030; email address:
                                               (iv) Inclusion of a condition on a
                                                                                                    Jennifer M. Jones,                                    [email protected].
                                            deposit insurance application or other
                                            approval;                                               Deputy Executive Secretary.                           SUPPLEMENTARY INFORMATION:
                                               (v) Imposition of additional approval                [FR Doc. 2026–06947 Filed 4–9–26; 8:45 am]            I. Executive Summary
                                            requirements;                                           BILLING CODE 4810–33–P; 6714–01–P
                                               (vi) Any other heightened                                                                                  A. Does this action apply to me?
                                            requirements on an activity or change;                                                                           You may be potentially affected by
                                               (vii) Any adjustment of the                          ENVIRONMENTAL PROTECTION                              this action if you are an agricultural
                                            institution’s capital requirement; and                  AGENCY                                                producer, food manufacturer, or
                                               (viii) Any action that negatively                                                                          pesticide manufacturer. The following
                                            impacts the institution, or an                          40 CFR Part 180                                       list of North American Industrial
                                            institution-affiliated party, or treats the                                                                   Classification System (NAICS) codes is
                                            institution differently than similarly                  [EPA–HQ–OPP–2025–0155; FRL–13295–01–
                                                                                                    OCSPP]                                                not intended to be exhaustive, but rather
                                            situated peers.                                                                                               provides a guide to help readers
                                               Doing business with means:                                                                                 determine whether this document
                                               (i) The bank providing any product or                Polyethylhexyl Glycidyl Ether
                                                                                                    Polyethylene Oxide Copolymer in                       applies to them. Potentially affected
                                            service, including account services;
                                               (ii) The bank contracting with a third               Pesticide Formulations; Exemption                     entities may include:
                                                                                                    From the Requirement for a Tolerance                     • Crop production (NAICS code 111).
                                            party for the third party to provide a
                                                                                                                                                             • Animal production (NAICS code
                                            product or service;                                     AGENCY: Environmental Protection                      112).
                                               (iii) The bank providing discounted or               Agency (EPA).                                            • Food manufacturing (NAICS code
                                            free products or services to customers or               ACTION: Final rule.                                   311).
                                            third parties, including charitable                                                                              • Pesticide manufacturing (NAICS
                                            activities;                                             SUMMARY: This regulation establishes an
                                                                                                                                                          code 32532).
                                               (iv) The bank entering into,                         exemption from the requirement of a                      If you have any questions regarding
                                            maintaining, modifying, or terminating                  tolerance for residues of polyethylhexyl              the applicability of this proposed action
                                            an employment relationship; or                          glycidyl ether polyethylene oxide
                                               (v) Any other similar business activity                                                                    to a particular entity, consult the person
                                                                                                    copolymer (CAS Reg. No. 82780–16–3)                   listed under FOR FURTHER INFORMATION
                                            that involves a bank client or a third                  when used as an inert ingredient                      CONTACT.
                                            party.                                                  (wetting agent or surfactant) on growing
                                               Institution means an entity for which                crops and raw agricultural commodities                B. What is EPA’s authority for taking
                                            the FDIC makes or will make                             pre- and post-harvest limited to no more              this action?
                                            supervisory determinations or other                     than 10% by weight of the pesticide                      EPA is issuing this rulemaking under
                                            decisions, either solely or jointly.                    formulation. Spring Regulatory Sciences
                                               Institution-affiliated party means the                                                                     section 408 of the Federal Food, Drug,
                                                                                                    on behalf of Ashland Specialty                        and Cosmetic Act (FFDCA), 21 U.S.C.
                                            same as in section 3 of the Federal                     Ingredients G.P. submitted a petition to
                                            Deposit Insurance Act (12 U.S.C.                                                                              346a. FFDCA section 408(c)(2)(A)(i)
                                                                                                    EPA under the Federal Food, Drug, and                 allows EPA to establish an exemption
                                            1813(u)).                                               Cosmetic Act (FFDCA), requesting
                                               Reputation risk means any risk,                                                                            from the requirement for a tolerance (the
                                                                                                    establishment of an exemption from the                legal limit for a pesticide chemical
                                            regardless of how the risk is labeled by                requirement of a tolerance. This
                                            the institution or regulators, that an                                                                        residue in or on a food) only if EPA
                                                                                                    regulation eliminates the need to                     determines that the exemption is ‘‘safe.’’
                                            action or activity, or combination of                   establish a maximum permissible level
                                            actions or activities, or lack of actions or                                                                  FFDCA section 408(c)(2)(A)(ii) defines
                                                                                                    for residues of polyethylhexyl glycidyl               ‘‘safe’’ to mean that ‘‘there is a
                                            activities, of an institution could                     ether polyethylene oxide copolymer,
                                            negatively impact public perception of                                                                        reasonable certainty that no harm will
                                                                                                    when used in accordance with the terms                result from aggregate exposure to the
                                            the institution for reasons not clearly                 of the exemption.
                                            and directly related to the financial or                                                                      pesticide chemical residue, including
                                                                                                    DATES: This regulation is effective April             all anticipated dietary exposures and all
                                            operational condition of the institution.
                                                                                                    10, 2026. Objections and requests for                 other exposures for which there is
                                            PART 364—STANDARDS FOR SAFETY                           hearings must be received on or before                reliable information.’’ This includes
                                            AND SOUNDNESS                                           June 9, 2026 and must be filed in                     exposure through drinking water and in

lotter on DSK8BHNXB4PROD with RULES1
                                                                                                    accordance with the instructions                      residential settings but does not include
                                            ■ 13. The authority citation for part 364               provided in 40 CFR part 178 (see also                 occupational exposure. Pursuant to
                                            continues to read as follows:                           Unit I.C. of this document).                          FFDCA section 408(c)(2)(B), in
                                              Authority: 12 U.S.C. 1818 and 1819                    ADDRESSES: The docket for this action,                establishing or maintaining in effect an
                                            (Tenth), 1831p–1; 15 U.S.C. 1681b, 1681s,               identified by docket identification (ID)              exemption from the requirement of a
                                            1681w, 6801(b), 6805(b)(1).                             number EPA–HQ–OPP–2025–0155, is                       tolerance, EPA must take into account

                                       VerDate Sep<11>2014   15:47 Apr 09, 2026   Jkt 268001   PO 00000   Frm 00020   Fmt 4700   Sfmt 4700   E:\FR\FM\10APR1.SGM   10APR1