A two-year old initiative by the Federal Reserve designed to monitor crypto currency activity in the nation’s bank has now been discontinued.
The Federal Reserve Board has officially announced that it will “sunset its novel activities supervision program.” By so doing, said the Board, it will “return to monitoring bank’s novel activities through the normal supervisory process.”
The Board added that the move symbolizes a “strengthened understanding of those activities, related risks, and bank risk management practices” undertaken by banks in their normal practices.
The original supervision program was designed to center on such things as stablecoin and dollar token issuances, digital asset trading, crypto-collateralized lending, as well as crypto-asset custody.
The growing presence of crypto currency has for some time been a matter of concern to the nation’s bankers, with the American Banking Association issuing an official guide designed to help banks “navigate key questions around stablecoins, including regulatory considerations, use cases, and potential impacts on the financial system.”
The Board’s move, notes The Street publication, is reflective of decisions made by the Office of the Comptroller of the Currency as well as the Federal Deposit Insurance Corporation to relax “procedural barriers to banks’ involvement in crypto, focusing instead on risk management and compliance.”
Observes the Bit Coin News: “Strict oversight has made some institutions reluctant to use crypto. They may now have a more confident step through the regular procedure of the Fed.”
August 19, 2025
By Garry Boulard
