Federal Reserve Discontinues Specialized Crypto Oversight Program
The Federal Reserve will discontinue its dedicated “novel activities” supervision program for banks involved in crypto and fintech. Responsibilities will now be integrated into the Fed's standard supervisory process.
This change indicates the Fed's confidence in assessing crypto-related risks, including:
- Stablecoins
- Digital asset custody
- Tokenization
These activities will be treated like regular banking operations rather than requiring heightened scrutiny.
This adjustment is part of a broader reduction in regulatory barriers this year. In April, the Fed, FDIC, and OCC eliminated rules mandating pre-approval for crypto services. In June, the Fed ceased considering “reputational risk” in bank evaluations, focusing instead on financial concerns.
This shift may facilitate smoother integration between crypto, fintech, and traditional banking, decreasing compliance friction.