The U.S. Federal Reserve has announced it is officially terminating its specialized “novel activities” supervision program, launched in 2023 to monitor banks’ involvement in cryptocurrency and fintech sectors as of August 15, 2025. Oversight of these emerging activities will now be integrated into the Fed’s standard supervisory framework.
Why It Matters
- Streamlining Oversight: By eliminating this dedicated program, the Fed signals an improved understanding of the risks posed by crypto and fintech within traditional banking channels.
- Regulatory Shift: Banks will no longer be subject to a specialized regulatory regime for emerging tech; instead, they’ll be assessed under existing supervisory protocols.
- Market Significance: Institutions heavily involved in digital assets or fintech services may see reduced regulatory friction and clearer expectations.
A spokesperson noted, “This move reflects the central bank’s confidence in integrating emerging risk oversight into routine examinations,” marking an important evolution in regulatory strategy.
Global Banking Context
This decision comes amid broader global shifts in bank regulation. Simultaneously, banking regulators worldwide are grappling with how to oversee crypto adoption, balancing innovation with financial stability. South Asian and Middle Eastern banks, for example, are watching closely as Lebanon reformulates its banking governance structure following years of economic crisis.
