U.S. Fed Disbands Special Crypto Oversight Group, Shifts to Routine Supervision

The Federal Reserve has quietly dismantled its Novel Activities Supervision Program, a two-year initiative designed to monitor banks' involvement in cryptocurrency. The MOVE signals a broader retreat from aggressive oversight of digital assets under the current administration.

Established during Vice Chair Michael Barr's tenure, the specialized program will now be absorbed into the Fed's standard supervisory framework. This follows April's withdrawal of crypto guidance that previously required banks to seek regulatory approval for digital asset activities.

The decision aligns with a coordinated pullback among U.S. banking regulators. Both the OCC and FDIC have similarly rescinded prior crypto directives, leaving financial institutions to navigate digital assets within existing risk management protocols.