Fed Abandons Crypto Supervision Program Amid Regulatory Retreat

The Federal Reserve has abruptly shut down its Novel Activities Supervision Program, a 2023 initiative meant to monitor banks’ crypto and fintech ventures—raising questions about oversight gaps.

While the Fed claims it has “strengthened its understanding” of digital assets, critics may see the move as a deregulatory win for the industry. The program’s demise follows April’s reversal of guidance that once discouraged banks from crypto activities.

The shift underscores a stark departure from the Biden-era approach, leaving some to wonder whether risks are being sidelined for industry convenience.