The Office of the Comptroller of the Currency (OCC) issued a Notice of Proposed Rulemaking (NPRM) on April 24, 2026, aimed at streamlining several key regulatory frameworks. The proposal, designated as OCC Bulletin 2026-16 and filed under Docket ID OCC-2025-0075, seeks to rescind or amend regulations governing public welfare investments, open market collateralized loan obligations (CLOs), and nondiscrimination requirements for Federal Savings Associations (FSAs).
According to the OCC, the proposed changes are consistent with Executive Order 14219, titled Ensuring Lawful Governance and Implementing the President's Department of Government Efficiency Deregulatory Initiative. The agency stated that the initiative is designed to identify and remove regulations that are unnecessary, duplicative, or lack clear statutory authority. The proposed rule would specifically modify 12 CFR parts 24, 43, and 128 of title 12 of the Code of Federal Regulations.
A primary component of the proposal involves 12 CFR Part 24, which covers Community Development Corporation and Project Investments as well as other public welfare investments. The OCC proposes to remove certain references to minority- and women-owned entities within these regulations. The agency noted that these amendments are intended to align the part with the best reading of underlying statutory authority and to reduce the administrative burden on national banks making such investments.
The NPRM also targets 12 CFR Part 43, specifically the credit risk retention requirements for open market CLOs. The OCC plans to rescind 12 CFR 43.9, which currently provides an alternative compliance option for lead arrangers of these financial instruments. This regulation was originally part of a 2014 joint final rule implementing Section 15G of the Securities Exchange Act of 1934, as mandated by the Dodd-Frank Act. The OCC’s review concluded that the specific provision for lead arrangers is unnecessary under the current deregulatory framework and follows a 2018 court decision that impacted the application of risk retention rules to CLO managers.
Furthermore, the OCC intends to rescind 12 CFR Part 128, which establishes nondiscrimination requirements for Federal Savings Associations. The agency characterized these requirements as duplicative of other existing legal authorities that address discrimination. By removing Part 128, the OCC aims to eliminate regulatory requirements for FSAs that do not apply to national banks, thereby creating a more uniform regulatory environment across different types of federal charters.
The OCC has invited public comment on all aspects of the proposed rule. Interested parties must submit their feedback within 30 days following the proposal's publication in the Federal Register. The agency emphasized that while these specific sections are being rescinded or amended, core safety-and-soundness standards remain a priority. The proposal applies to all national banks, federal savings associations, and federal branches and agencies of foreign banks.