Fed Ends Crypto Bank Supervision Program in Regulatory Rollback

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The US Federal Reserve has terminated its specialized program overseeing banks engaged in crypto and fintech activities, signaling a broader retreat from digital asset regulation.

Launched in August 2023, the Novel Activities Supervision Program aimed to enhance oversight of crypto, blockchain, and tech-driven banking partnerships.

However, the Fed stated Friday that it has now “strengthened its understanding” of these activities and will reintegrate supervision into its standard processes.

The move follows the Fed’s April decision to rescind guidance discouraging banks from crypto and stablecoin involvement—marking a shift from the Biden-era regulatory stance.