The Federal Reserve is eliminating its Novel Activities Supervision Program, designed to oversee banks’ crypto activities. This marks a major shift in how the Fed approaches crypto risk management, as it integrates these activities into mainstream bank supervision. 2023 marked the beginning of this program under Vice Chairman Michael Barr, and now with matured expertise, the Fed is aligning itself with other financial regulators like the OCC and FDIC who are also normalizing cryptocurrency oversight within standard banking processes. This change could lead to greater autonomy for banks in managing crypto services, potentially shaping market perceptions about regulatory compliance risks. While the immediate impact on the crypto market or specific assets remains unclear, this move signals a potential shift towards a more relaxed and normalized compliance landscape.