End of Special Crypto Scrutiny Program

The Federal Reserve has announced the discontinuation of its novel activities supervision program, which was specifically designed to enhance the scrutiny of crypto-assets within banks. This decision marks a significant shift in the regulatory approach towards cryptocurrencies in the banking sector.

Integration into Standard Supervision

According to the Fed, the program has successfully deepened its understanding of crypto and fintech activities, associated risks, and banks' risk management practices. Consequently, the knowledge gained and the oversight of these activities will now be integrated back into the standard supervisory process, eliminating the need for a separate program.

Rescinding the 2023 Supervisory Letter

The Fed also mentioned the rescission of its 2023 supervisory letter that established the program, underscoring the transition towards a more normalized regulatory framework for crypto-related banking activities.