Federal Reserve Ends Special Crypto Oversight Program, Moves Digital Asset Supervision Back to Standard Process
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The Federal Reserve officially shut down its special crypto monitoring team on August 15, 2025. The central bank will now handle digital asset oversight through its regular banking supervision process. The Novel Activities Supervision Program lasted just two years. The Fed created it in August 2023 to watch banks that work with crypto companies and blockchain technology. “Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices,” the Fed said in its announcement. What the Program Did The special program kept close watch on four main areas of banking: Crypto-related services – Banks that offered crypto custody, crypto-backed loans, crypto trading help, and stablecoin creation or distribution. Tech partnerships – Complex deals between banks and non-bank companies that used automated systems to provide banking services to customers. Blockchain projects – Banks exploring distributed ledger technology for things like digital tokens and turning traditional assets into digital form. Crypto-focused banking – Banks that mainly served crypto companies and fintech firms with standard services like deposits, payments, and loans. The program was “risk-focused” and worked alongside existing bank supervision teams rather than creating separate oversight groups. Banks in the program received written notice and faced regular examinations of their crypto activities. Banks Can Now Use Normal Channels The Fed’s decision means banks no longer need special approval for crypto activities. The central bank believes it now understands digital asset risks well enough to handle them through standard supervision. Source:@federalreserve This change removes what many saw as extra red tape. Banks previously had to prove they could safely handle crypto activities before getting the green light. Now they can proceed under normal banking rules as long as they follow existing safety and…
Filed under: News - @ August 16, 2025 5:25 am