Working alongside banking and financial technology industry groups, the agency aims to establish a body that would define baseline criteria aligned with federal regulatory expectations and then verify whether service providers satisfy those criteria. According to details outlined in a draft term sheet circulated in late July, the new entity would focus on common elements of third-party risk management. Participation in the standards regime would remain entirely voluntary, and neither banks nor technology firms would face penalties for opting out. Independent third-party assessors, rather than the standards body itself, would perform the actual compliance reviews that support any certification decision. Officials and participants expect the process to accelerate, particularly as federal banking regulators prepare to issue updated guidance on third-party risk management in the coming weeks.