The Federal Reserve will sunset a program started in 2023 to supervise bank activities related to cryptocurrencies and financial technology and instead roll those activities into its regular supervision.
The Novel Activities Supervision Program was created to complement the Fed’s existing supervisory process, allowing it to monitor the “novel manifestations of risks” that can arise with the rapid adoption of new technologies, such as crypto. In a statement today, the Fed said it is ending the program because it “has strengthened its understanding of those activities, related risks and bank risk management practices.”
“As a result, the [Fed] 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,” it said.
