The Federal Reserve’s Novel Activities Supervision Program, created in 2023 to scrutinize banks’ cryptocurrency and fintech activities, will conclude on August 15, 2025, according to an official release. This specialist framework required institutions offering services such as stablecoin custody and tokenization to submit additional notifications and adhere to bespoke guidelines.
Under the new arrangement, supervision of crypto-related banking operations will be integrated into the central bank’s routine audit and inspection processes. Banks will now undergo standard risk assessments addressing cybersecurity and operational resilience rather than following the program’s extra notification requirements. The Fed emphasized that oversight will continue under traditional protocols, with no concession on risk management standards.
Industry stakeholders have noted that eliminating the separate supervisory mechanism may lower compliance costs and encourage banks to expand digital asset services. The move reflects the Fed’s growing confidence in its ability to manage crypto-related risks within existing regulatory frameworks and signals a maturation of the sector’s institutional integration.
Analysts suggest that the termination of the program underscores the Fed’s view that digital asset activities now pose challenges manageable by the established supervisory infrastructure. While the special program ends, the Fed reaffirmed its commitment to monitor emerging risks, ensuring that the integration of crypto services supports financial stability without imposing undue burdens on regulated institutions.
As the market evolves, businesses and legal experts will closely watch subsequent guidance from examiners on how standard audits will address the unique aspects of digital asset operations. The central bank’s decision marks a pivotal moment in U.S. crypto policy, balancing innovation support with prudent risk oversight.
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