The FDIC today announced that it has extended by 30 days the public comment period for its proposal to expand the definition of “deposit broker,” and thereby which deposits are considered brokered. The deadline for comments has been pushed back from Oct. 22 to Nov. 21.
The proposed rule would expand the definition to capture many deposits that currently do not meet the criteria. Deposits deemed to be brokered, receive enhanced supervisory scrutiny and regulatory treatment. The proposed changes would affect sweep deposits and those related to financial technology and cryptocurrency. It would amend a 2020 rule that FDIC Chairman Martin Gruenberg has said is too narrow in scope.
In August, the American Bankers Association joined 10 associations in a joint letter opposing the rule, saying the agency has not provided sufficient data or a robust rationale to justify the proposed changes.