15.08.2025 17:05

The Federal Reserve has decided to discontinue its Novel Activities Supervision Program, a relatively recent initiative established in 2023 to oversee banks' involvement in the burgeoning cryptocurrency, blockchain, and fintech sectors. This marks a shift in the Fed's approach to regulating these innovative financial technologies.


Initially designed to provide enhanced scrutiny of banks' engagement with cryptocurrencies, including activities such as stablecoin projects, digital asset custody, and the management of tokenized assets, the program aimed to proactively assess the risks associated with these rapidly evolving areas. The Fed's increased oversight was intended to ensure financial stability within the banking system as it navigated this new technological landscape.


The termination of this specialized program signifies a return to the Fed's standard supervisory framework for all banking activities. This decision suggests a confidence, or perhaps a reassessment, of the existing regulatory structure's ability to adequately address the risks presented by banks' involvement in crypto and related technologies. The reasoning behind the Fed's decision remains to be fully clarified.


While the exact reasons for the program's discontinuation haven't been explicitly detailed, the move indicates a potential shift in the Fed's strategic focus on crypto-related banking activities. It could suggest either a belief that the existing regulatory tools are sufficient or a change in the perceived level of risk associated with these new financial technologies. Further explanation from the Federal Reserve is anticipated. Analysts and industry stakeholders will be closely monitoring the implications of this decision.