OCC Official Reaffirms Federal Preemption in Push for Nationwide Banking Market

Congress enacted the National Bank Act in 1864, establishing a nationwide system of federally chartered banks. The Dodd-Frank Act of 2010 later revised the standard for federal preemption. The framework determines whether national banks must comply with different rules in each state, directly affecting operating costs, the consistency of financial services and states’ regulatory authority.

Jonathan Gould, acting comptroller of the Office of the Comptroller of the Currency, recently told a conference that the primacy of federal law over conflicting state banking laws is a central pillar of a nationwide market and economic union. Reports did not disclose the exact date of the conference or any monetary figures. The OCC said it would continue to defend federal preemption through litigation and other legal proceedings.