Federal Reserve Dismantles Crypto Supervision Program, Loosening Regulations for Banks

The Federal Reserve has concluded its Novel Activities Supervision Program, eliminating specific oversight of banks’ cryptocurrency activities and shifting regulatory focus to routine banking supervision. This decision is expected to reduce barriers for U.S. banks venturing into digital asset markets, potentially accelerating adoption of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), while ensuring adherence to risk management standards.