Fed Terminates Special Crypto Oversight Program, Reverts to Standard Supervision

The U.S. Federal Reserve is dismantling its Novel Activities Supervision Program, a dedicated framework established in 2023 to monitor banks engaged in cryptocurrency, blockchain, and fintech partnerships. The initiative was designed to scrutinize emerging banking activities—including crypto custody, stablecoin issuance, and tokenized assets—as well as traditional banking services provided to crypto firms.

Regulators claim the program has achieved its objective, granting them sufficient insight into associated risks and management practices. Moving forward, oversight of crypto-related banking operations will fall under the Fed's conventional supervisory process. "The Board's targeted supervision of crypto and fintech activities in banks has served its purpose," officials stated, signaling a normalization of regulatory scrutiny for the sector.