OCC Reaffirms Preemption Regulations in Response to CSBS Request

On June 9, 2025, the OCC responded to a letter from the CSBS denying its request for the OCC to rescind its federal preemption regulations.  The CSBS claimed that the federal preemption regulations implemented by the OCC are unlawful and misaligned with the National Bank Act and the Supreme Court’s ruling in Cantero v. Bank of America, N.A.  The CSBS further argued that the OCC’s federal preemption regulations undermine state consumer financial laws and do not comply with Executive Orders 14219 and 14267, recently issued by President Trump.

The OCC firmly rejected CSBS’ position and reaffirmed that its federal preemption regulations are lawful, consistent with the Dodd-Frank Act, and upheld by Cantero, which reaffirmed the preemption conflict standard in Barnett Bank of Marion County, N.A. v. Nelson (which the OCC avers is the standard it implements in its federal preemption regulations).  In addition, the OCC disagreed with CSBS’ claim that its federal regulations are anti-competitive.  The OCC reasoned that federal preemption is a cornerstone of the dual banking system, enabling federally chartered banks to operate efficiently across state lines to develop national products and services, which has historically fostered national economic growth.  The OCC concluded that its federal preemption regulations comply with the Executive Orders.