15.08.2025 22:09

The Federal Reserve has discontinued its specialized supervisory program designed to monitor U.S. banks' involvement in cryptocurrency-related activities. This decision, announced Friday, marks a significant shift in the regulatory approach towards the burgeoning fintech sector. The heightened scrutiny previously applied to banks offering services such as cryptocurrency custody or stablecoin operations is now rescinded.

This change comes amidst a broader reshaping of the U.S. regulatory landscape concerning financial technology. The Fed’s statement explained that the program, initiated in 2023, had successfully enhanced their understanding of the risks associated with these novel financial activities and the corresponding risk management strategies employed by banks. As a result, the program is deemed redundant, with oversight now reverting to the standard supervisory process.

Previously, the central bank had issued guidance, in both August 2022 and August 2023, advising banks on mitigating risks inherent in cryptocurrencies, distributed ledger technology, and collaborative ventures with non-bank entities. These initial directives, emphasizing the need for increased supervision of "innovative" activities like crypto custody, were later superseded by the specialized Novel Activities Supervision Program. This program, launched in August 2023, subjected banks offering crypto services to a more rigorous monitoring regime. It encompassed a range of activities beyond stablecoin and custody services.

The termination of this specific program, announced in Friday's order, represents a significant step towards a potentially less stringent regulatory environment for banks exploring the opportunities within the cryptocurrency space. The transition back to standard supervisory procedures suggests a shift in the Federal Reserve's approach, balancing innovation with risk management within the banking sector. Instead of a dedicated program, oversight will now integrate with existing frameworks.