The Federal Reserve announced on Friday it was scrapping a so-called “novel activities” supervision program it created to specifically police banks on their crypto and fintech activities, and instead will integrate that work into its regular bank oversight.
The Fed launched the new program in 2023 as a way to focus on how banks interact with those emerging technologies. But the central bank said it was no longer needed as the Fed has strengthened its understanding of those risks and how banks manage them.