Fed Ends Dedicated Crypto Oversight Program, Reverts to Standard Supervision

The Federal Reserve has discontinued its specialized crypto monitoring initiative, folding digital asset oversight back into conventional banking supervision frameworks. The Novel Activities Supervision Program, established in 2023 to track banks' cryptocurrency custody, blockchain services, and API-powered fintech partnerships, was officially terminated via board notice.

Regulators concluded the temporary program had achieved its goal of enhancing comprehension of crypto-related banking activities. The decision reflects institutional confidence in existing supervisory mechanisms' ability to handle digital asset operations without specialized protocols.

Originally designed as an enhanced monitoring tool rather than a regulatory clampdown, the program focused on banks engaging in stablecoin issuance, tokenization projects, or crypto-collateralized lending. Its dissolution signals maturation in regulatory understanding of blockchain-based banking operations.