Federal Reserve Ends Special Crypto Oversight Program

The Federal Reserve Board has announced the termination of its ‘novel activities’ supervisory program, effective August 15, 2025, returning oversight of crypto and fintech businesses to standard processes.

This shift signals increased regulatory comfort with the sector, potentially lowering compliance costs and encouraging banks to expand their crypto services amidst evolving industry dynamics.

Federal Reserve Reverts Crypto Oversight to Standard Procedures

The Federal Reserve Board terminated its special supervisory program, initiated to oversee banking operations involving cryptocurrencies and fintech. This decision reflects increased understanding of associated risks and will return these activities to regular oversight procedures. Earlier established under Vice Chairman Michael Barr, the program’s end signals a shift towards standard regulatory practices.

Federal agencies, including the Office of the Comptroller of the Currency and FDIC, adjusted their regulatory stances, aligning with the Fed’s revised oversight. The immediate impact may include reduced compliance burdens for involved banks and an altered risk assessment framework.

While no statements were released from Federal Reserve Chair Jerome Powell, industry observers anticipate that reverting to normal supervision could influence US banks’ positioning in crypto asset services, generating a cautious yet optimistic sentiment. No notable public comments from key crypto figures have surfaced following this announcement.

Shifts in Crypto-Banking Dynamics and Regulatory Adjustments

Did you know? The Federal Reserve’s supervisory program was initially created to address the unique risks posed by cryptocurrencies and fintech innovations.

The Federal Reserve Board on Friday announced that it will sunset its novel activities supervision program and return to monitoring banks’ novel activities through the normal supervisory process.

Federal Reserve Press Release