- The Federal Reserve has ended its specialized crypto oversight program, shifting back to normal procedures.
- This change affects supervision of banks’ cryptocurrency-related activities.
- Market reactions are mixed as regulatory dynamics shift again.
The Federal Reserve Board has announced the termination of the program overseeing banks’ cryptocurrency activities, returning to normal supervisory processes as of August 15, 2025.
This shift reflects confidence in banks’ capability to manage crypto risks independently, with potential implications for stablecoin and lending activities.
Federal Reserve Shifts Back to Conventional Bank Oversight
The Federal Reserve Board has decided to end its “novel activities” supervisory program, a move that reintegrates crypto oversight into conventional processes. The program, initiated due to the rapid growth of fintech and crypto businesses in banks, is now deemed unnecessary.
Banks will resume normal supervisory procedures rather than undergoing specialized scrutiny. This change is based on the Fed’s enhanced understanding and confidence in banks’ risk management practices concerning crypto activities.
“The Board is integrating that knowledge and the supervision of those activities back into the standard supervisory process and is rescinding its 2023 supervisory letter creating the program.” — Michael Barr, Vice Chairman, Federal Reserve Board
Bitcoin Price and Market Impact Following Fed’s Decision
Did you know? The Federal Reserve first imposed specialized supervision during crypto’s rapid rise post-2021 market shocks, echoing past regulatory patterns seen in financial innovation phases.
As per CoinMarketCap, Bitcoin (BTC) has a current price of $117,011.52 with a market cap of $2.33 trillion. It commands a market dominance of 59.13%. Over the past 24 hours, BTC’s price decreased by 0.83%, showing a 7-day increase of 0.53%. Data as of August 15, 2025, logged this activity alongside a 30-day dip of 1.91% and 90-day uptrend of 13.36%.
Insights from Coincu research suggest that the resumption of typical oversight could lead to increased innovation as banks may feel more autonomous. However, risks remain due to crypto-specific challenges in current regulatory frameworks.
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Source: https://coincu.com/news/federal-reserve-ends-crypto-supervision/