U.S. Fed Disbands Special Crypto Oversight Group, Reverts to Standard Supervision

The Federal Reserve has officially terminated its Novel Activities Supervision Program, a two-year initiative designed to monitor banks' involvement with cryptocurrencies. The central bank will now fold crypto oversight back into its routine supervisory processes.

Established under Vice Chairman Michael Barr's leadership, the specialized program aimed to address emerging risks from digital assets. Its dissolution marks another step in the Fed's broader retreat from aggressive crypto scrutiny, aligning with other U.S. banking regulators' relaxed stance.

This follows April's withdrawal of guidance requiring banks to seek regulatory approval for crypto activities. The Office of the Comptroller of the Currency and FDIC made parallel moves, collectively shifting responsibility to financial institutions' existing risk management frameworks.