Fed ends crypto-specific bank oversight, integrating activities into standard reviews. Regulators now believe existing frameworks can handle digital asset-related banking. Leadership shifts and political tensions add complexity to Fed’s policy direction. The Federal Reserve has announced it will phase out its specialized oversight framework for banks engaged in cryptocurrency and fintech ventures. Introduced in 2023, the program specifically targeted novel banking activities, such as providing payment services, deposit accounts, and loans to crypto-related businesses. Now, the Fed says these activities will return to the regular supervisory system. This move comes after regulators reported a better understanding of the risks, operations, and controls involved in such emerging financial services. The decision marks a notable shift in the central bank’s approach toward monitoring the intersection of banking and digital assets. @federalreserve announces it will sunset its novel activities supervision program and return to monitoring banks’ novel activities through the normal supervisory process: https://t.co/GRhepriDhY — Federal Reserve (@federalreserv… The post Fed Ends Specialized Crypto Oversight, Returns to Standard Bank Supervision appeared first on Coin Edition .
