- The Federal Reserve is ending its special oversight program for U.S. banks involved in crypto, which was launched in 2023 to enforce stricter guidelines and monitoring.
- “Novel” activities like crypto custody, stablecoin services, and tokenization will now be supervised through the Fed’s standard review process instead of a dedicated program.
- The central bank says the decision follows improved understanding of crypto-related risks and bank risk management practices over the past two years.
The Federal Reserve has quietly pulled the plug on its specialized oversight program for U.S. banks dabbling in crypto. The move, announced Friday, ends a system that—since 2023—forced banks to wave a flag before jumping into anything blockchain-related and to follow a tighter rulebook than usual.
Back when the program launched, the Fed wanted a close-up view of how banks handled “novel” activities like crypto custody, stablecoin services, and tokenization projects. Now, after nearly two years of extra scrutiny, they say they’ve learned enough to fold those checks back into their standard supervision process.
Back to Business as Usual—Sort Of
In its statement, the central bank noted that the program helped it better understand the risks and risk management practices tied to crypto and fintech. With that knowledge in hand, it’s rescinding the specialized oversight approach. From here on out, those same crypto-related activities will be monitored just like any other line of business—no dedicated, high-intensity framework.
That doesn’t mean the Fed is easing up entirely. The activities still fall under the usual compliance and safety reviews, but the extra layer of tailored oversight is gone. For banks already in the space—or eyeing an entry—this could mean a little less friction in getting new products and services off the ground.
