The Federal Reserve is disbanding its dedicated crypto banking supervision program, a move likely to ease compliance burdens for financial institutions exploring digital assets.
The Novel Activities Supervision Program, established in 2023, was created to monitor risks in crypto, blockchain, and fintech partnerships. But the Fed now claims sufficient expertise to fold oversight into routine examinations.
This follows April’s rollback of restrictive guidance on bank involvement in crypto—a potential boon for institutional adoption. The reversal suggests a more permissive stance under current leadership.
