Fed Ends "Novel Activities" Crypto Oversight — What Does It
Crypto_with_her
Updated at: 2 hours ago
{"content":"Fed Ends "Novel Activities" Crypto Oversight — What Does It Mean?
1. What Just Happened
🔸The Federal Reserve has announced it will discontinue its "novel activities" supervisory program—a specialized framework established in 2023 to monitor banks' engagement with crypto and fintech services. Instead, crypto-related oversight will be integrated into the Fed's standard bank supervision processes.
2. A Big Step Toward Mainstream Crypto Banking
🔸This move follows earlier regulatory rollbacks:
* 🔸The Fed removed “reputational risk” from its supervisory guidelines—a source of ambiguity that often led banks to sever ties with crypto firms.
* 🔸It also rescinded past guidance requiring banks to seek advance approval before engaging in crypto or stablecoin activities.
🔺Michael Saylor hailed the shift as a major development—calling it a new pathway for “bank-grade” Bitcoin support.
4. What’s Next to Watch
* 🔺Banks Entering Crypto Space: Institutions may now start offering custody, trading, or lending services in crypto.
* 🔺Stablecoin & Digital Asset Integrations: With less friction, token-based payment systems and stablecoin usage may expand rapidly.
* 🔺Regulatory Evolution: While guidance has been pulled back, coordinated efforts with FDIC and OCC may lead to updated frameworks that balance innovation and safety.
🎀MY POV:
The Fed’s decision to fold crypto oversight into routine supervision marks a clear pivot toward financial innovation. The regulatory environment is becoming more welcoming, potentially ushering in a new era of crypto–legacy finance integration.
#FederalReserve #CryptoRegulation #Banking #CryptoNews #DigitalAssets #DeFi #Bitcoin #CryptoAdoption #HotJulyPPI #Stablecoins #FinancialInnovation
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