The FDIC Board of Directors approved a proposed rule clarifying when host-state laws apply to out-of-state state-chartered banks under Section 24(j) of the Federal Deposit Insurance Act. The framework would generally align state banks with national banks when they provide comparable services across state lines, including without maintaining a physical branch in the host state. The proposal follows legal uncertainty surrounding Illinois’ Interchange Fee Prohibition Act, which restricts certain payment-card interchange fees and transaction-data use. A June federal court decision blocked portions of the law from being enforced against certain national banks, federal savings associations, payment networks and qualifying out-of-state state banks. The FDIC said the proposal does not establish rules for cryptocurrency, stablecoins or other digital assets, nor does it independently determine whether a state law is federally preempted. The agency counted 3,449 state banks at the end of 2025 and estimated the proposal could reduce compliance costs by about $308 million initially and $6.7 million annually. Senator Cynthia Lummis has separately advocated clearer federal banking rules for digital-asset activities. The proposal will undergo public comment and could change before any final rule is adopted.