According to CoinMeta, the Federal Reserve Board requested comments on a proposal to modernize the credit rules for insiders of banks on Friday. The proposal aims to update outdated thresholds while maintaining protections for preferential treatment. Since 1979, these regulations have not been comprehensively updated. These rules address the unique challenges faced by community banks, whose board members and executives are often local business owners and community leaders, providing valuable insights and expertise to bank governance and the local economy. The proposal updates the dollar-based thresholds and links them to future economic growth. It also addresses the unnecessary application of rules to passive interests held by investment funds, standardizes other legal requirements, incorporates long-standing regulatory interpretations, and simplifies the application of the rules. Michelle W. Bowman, vice chair of the Federal Reserve, stated, "Today’s proposal modernizes these regulations by updating outdated dollar-based thresholds and ensuring their relevance in the future, while maintaining necessary protective measures."