Archive · 16 Aug 2025
Fed Ends Crypto Oversight, Integrating Supervision
The US Federal Reserve, America's central bank, is stopping its special program that watched over how banks dealt with crypto and new financial tech.
This program started after some banks, like Silicon Valley Bank, had problems related to crypto.
The Fed now thinks it understands crypto and fintech well enough to just include them in its regular bank checkups.
This is happening because of the Fed's work since 2023, which helped them gain insight into the banks activities and risks.
Bitcoin and Ethereum prices have been impacted by this, showing potential for profit booking by the investors.
The Federal Reserve ended its specialized program for overseeing banks' crypto and fintech activities.
The program was launched after the collapse of FTX and other crypto-related bank failures in 2023.
The Fed cited increased understanding of crypto and fintech risks as the reason for the change.
The program's oversight will be integrated into the standard supervisory process.
This move comes amid a push for cryptocurrency popularisation from the Trump administration.
- Who
- The US Federal Reserve.
- What
- The US Federal Reserve ended its Novel Activities Supervision Program.
- When
- The program ended recently, and it was launched in 2023.
- Where
- United States
- Why
- The Fed has increased its understanding of crypto and fintech activities and related risks.
Potential Concerns
Promoting Cryptocurrency Popularisation
Regulatory Approach
Potential Concerns
Concerns regarding the risks of banks' involvement with digital assets.
Promoting Cryptocurrency Popularisation
Promotion of stablecoins and cryptocurrencies, along with potential for rate cuts by the Fed.
- Program Name
- Novel Activities Supervision Program
- Launched
- 2023
- Focus
- Banks' crypto and fintech activities
- Reason for Closure
- Increased understanding of risks
- Banks Involved
- Silicon Valley Bank, Signature Bank, Silvergate Bank
