The Federal Reserve has ended its enhanced oversight program for cryptocurrencies, returning banks to standard regulations.
Conclusion of Oversight Program
The U.S. Federal Reserve has concluded its Novel Activities Supervision Program, which had intensified scrutiny on banks involved in cryptocurrency as of August 15, 2025. The Federal Reserve stated, "As a result, the Board is integrating that knowledge and the supervision of those activities back into the standard supervisory process and is rescinding its 2023 supervisory letter."
Impact on Crypto Banking Services
The end of the program may ease regulatory pressure on banks, fostering innovation in crypto services. Banks are expected to increase their involvement with major digital assets like ETH and BTC, acting as custodians or facilitators.
Future Prospects and Expectations
Some analysts express cautious optimism about the potential for increased bank engagement with decentralized finance (DeFi) platforms, as previous regulatory relaxations have historically boosted bank participation in such sectors.
It is anticipated that the further reduction of oversight will lead to increased bank activity in cryptocurrency and decentralized finance.
