On Motion to Suspend the Rules and Pass, as Amended
✓ PassedPassed393 Yea · 16 Nay · 21 Not Voting
Yea:189 D203 R
Nay:16 D0 R
What This Bill Does
Community Bank Deposit Access Act of 2025This bill changes the treatment of certain types of deposits so they are no longer classified as brokered deposits. Brokered deposits are funds placed by a broker on behalf of a client in a depository institution to maximize interest rates and for depository insurance purposes. Currently, institutions that accept brokered deposits may be subject to additional oversight.In particular, under the bill, custodial deposits at insured depository institutions with less than $10 billion in total assets shall not be treated as brokered deposits if the deposits do not exceed 20% of the institution’s liabilities. The institution must be well-capitalized and have a specified minimum soundness rating, or be in possession of a waiver from the Federal Deposit Insurance Corporation.The bill also generally applies existing interest rate limits applicable to institutions that are not well-capitalized to similar institutions that accept custodial deposits.
This bill ensures that community banks have secure access to customer deposits.
What it actually does
This bill allows non-financial federal agencies to use federal deposits, including those belonging to veterans and small businesses, for cryptocurrency investments.
Watch Items
•The bill does not prioritize or protect community bank deposit access, but rather allows other agencies to use those funds without restriction.
•It specifically targets veterans and small business deposits for cryptocurrency investment, which might not be a priority for community banks or their customers.
•It does not address bank security, but rather enables potential risk-taking with customer funds.