Fed to Sunset Crypto-Focused Supervision Program, Reverts to Standard Oversight
The Federal Reserve is dismantling its specialized program for monitoring banks' crypto and fintech activities, opting instead to reintegrate oversight into its conventional supervisory framework. The move follows a two-year effort to study risk management practices around digital assets.
Regulators have absorbed critical insights from the now-defunct initiative, which launched in 2023 through supervisory letter SR 23-7. The decision reflects growing institutional familiarity with cryptocurrency operations within traditional finance.
Market participants see this as a subtle validation of crypto's maturation. "When novel becomes routine, regulation follows suit," observed one compliance officer at a major custody bank, speaking anonymously about regulatory matters.
