The Federal Reserve Board on Friday announced that it will sunset its novel activities supervision program and return to monitoring banks’ novel activities through the normal supervisory process.
Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices. „As a result, the Board is integrating that knowledge and the supervision of those activities back into the standard supervisory process and is rescinding its 2023 supervisory letter creating the program.” – according to the press release.
The decision affects how the Fed manages banking organizations involved in blockchain, digital assets, and token-based infrastructure. The crypto oversight program for banks previously addressed technology partnerships and digital currency initiatives. Now, such activities will be assessed through the Fed’s broader supervisory process.
The Fed acknowledged that it no longer sees the need for a separate framework for novel technologies. Banking institutions will now report digital asset activities under regular oversight protocols, reflecting the Fed’s confidence in its risk assessment capabilities.
Though not necessarily suggesting a scaleback in oversight of banks dealing with crypto companies, US government agencies have taken a softer approach to regulating and handling digital assets under the Trump administration.
Since January, the Securities and Exchange Commission has dropped several investigations and enforcement actions into crypto companies, and statements from leadership at the Treasury suggested the department would fall in line with the White House’s policy setting up a national crypto reserve.
Banking 4.0 – „how was the experience for you”
„To be honest I think that Sinaia, your conference, is much better then Davos.”
Many more interesting quotes in the video below:
