The US Federal Reserve (Fed) said on Aug 15 that it will scrap its dedicated “novel activities” supervision programme, which was launched in 2023 to monitor banks’ involvement in crypto and fintech ventures, and fold that work into its regular oversight framework, Reuters reported.
The programme was originally designed to give regulators closer visibility into how lenders were experimenting with emerging technologies, including digital assets, distributed ledger systems and partnerships with fintech firms.
In a statement, the Fed said the standalone unit was no longer necessary as supervisors have “strengthened their understanding of the associated risks and how banks manage them”. Oversight of crypto and fintech activities will now be handled within the Fed’s existing supervisory structure.
The move reflects both regulators’ increased familiarity with digital finance and their effort to streamline supervisory practices as banks continue to cautiously explore blockchain-based payments, tokenisation and other technology-driven services.
