Federal Reserve Ends Special Oversight Program for Banks Involved in Crypto and Fintech The Federal Reserve has ended its Novel Activities Supervision Program moving banksʼ crypto and fintech oversight back into the regular supervisory framework. The program, introduced in August 2023, was designed to give the Fed closer visibility into banks experimenting with crypto custody, stablecoin activity, and fintech partnerships. According to the central bank, it has now met its objective of improving supervisory knowledge, making a dedicated program unnecessary. This step is part of a broader regulatory shift under the Trump administration. Earlier this year, the FDIC withdrew its requirement that banks notify the agency before engaging in crypto-related activities. At the same time, the Securities and Exchange Commission has launched “Project Cryptoˮ to modernise digital-asset rules, while the Office of the Comptroller of the Currency has clarified how existing banking regulations apply to stablecoin issuance and custody. Taken together, these moves signal a clear transition: rather than treating crypto as an isolated risk, US regulators are increasingly working to normalise digital-asset activity within the perimeter of traditional financial supervision. For banks, this reduces regulatory uncertainty and oversight friction. Easier integration of crypto into the standard banking system could strengthen fiat on- and off-ramps, improve liquidity for stablecoins, and accelerate the entry of traditional financial institutions into digital-asset services. For crypto markets, this means a clearer path for capital flows and institutional adoption, reducing one of the structural bottlenecks of recent years.
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