Fed Scraps Crypto Oversight Program as Regulatory Priorities Shift
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The Federal Reserve is winding down its Novel Activities Supervision Program, a 2023 initiative designed to monitor banks dabbling in crypto, blockchain, and fintech partnerships. The decision reflects a broader regulatory pivot under current leadership.
In a Friday announcement, the Fed said the program had served its purpose, allowing regulators to “strengthen [their] understanding” of crypto-related banking activities. Supervision will now revert to traditional processes.
The move aligns with recent steps to relax crypto banking restrictions, including April’s withdrawal of guidance that had deterred banks from stablecoin and digital asset services. The shift contrasts with the previous administration’s more cautious approach.
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