The Federal Reserve has ended its “Novel Activities Supervision Program,” which was introduced in 2023 to oversee banks involved in crypto-related activities such as Bitcoin custody, stablecoin services, and tokenization. The program required banks to notify regulators and follow a stricter review process.
According to the Fed, the decision follows a strengthened understanding of the risks and risk management practices associated with crypto. These activities will now be reviewed under the Fed’s regular supervisory framework. The 2023 supervisory letter establishing the program has been officially rescinded.
Regulatory Alignment
The move comes after similar steps by other agencies. In June, the Fed removed “reputational risk” from its manuals. In July, it joined the FDIC and OCC in releasing joint guidance clarifying how existing rules apply when banks provide crypto custody services. The guidance emphasizes control over private keys but does not introduce new supervisory burdens.
Read more: What the GENIUS Act Means for Stablecoin Regulation
Banks offering crypto-related services will still undergo standard compliance and safety reviews, but without the additional oversight layer. The change may streamline procedures for institutions entering or expanding in the digital asset space.
