Banking Law: An Overview of Federal Preemption in the Dual Banking System [January 23, 2018] [open pdf - 879KB]
"This report provides an overview of the respective roles of the federal government and the states in regulating banking. The report begins by providing a general overview of the doctrine of federal preemption, before discussing the American 'dual banking system.' It then addresses several key areas where preemption issues have arisen with respect to banking law, including (1) the standard for implied preemption of state laws that interfere with the powers of national banks adopted by the Supreme Court in Barnett Bank; (2) the Court's decisions in two cases concerning 'visitorial powers' over national banks, Watters v. Wachovia Bank, N.A. and Cuomo v. Clearing House Association, L.L.C.; and (3) interpretive letters and rules concerning federal preemption issued by the OCC [Office of the Comptroller of the Currency]. The report also discusses the provisions in Dodd-Frank concerning preemption of state consumer protection laws, and their interpretation by courts and the OCC. Finally, the report concludes by discussing issues that are likely of interest to the 115th Congress concerning preemption, including provisions in the Financial CHOICE Act of 2017 regarding which entities may benefit from NBA [National Bank Act of 1864] preemption of state usury laws."
CRS Report for Congress, R45081