U.S. regulators are finalizing a rule to define what counts as “unsafe or unsound” practices in bank supervision, according to a Fox Business crypto reporter on X. According to ChainCatcher, the rule would require supervisors to tie such findings to actual legal violations or material financial risk, rather than broad discretion based on vague reputational or procedural concerns.

The change could reduce pressure on banks serving lawful customers, including crypto companies, and marks another step toward rolling back Operation Choke Point 2.0.