WASHINGTON – The Federal Reserve announced on Friday that it is discontinuing its specialized “novel activities” supervision program, initially designed to monitor banks’ involvement in cryptocurrency and fintech sectors. Instead, the central bank will now incorporate this oversight into its standard regulatory framework.
Introduced in 2023, the program aimed to closely scrutinize how banks engaged with emerging technologies. However, the Fed stated that the dedicated initiative is no longer necessary, as regulators have now developed a stronger understanding of the associated risks and how financial institutions manage them. This shift reflects the maturation of oversight practices in the rapidly evolving fintech and crypto space.
