Fed to scrap program devoted to policing banks on crypto, fintech activities
The Federal Reserve has decided to discontinue its "novel activities" supervision program aimed at monitoring banks' crypto and fintech activities. This program, initiated in 2023, will be integrated into the Fed's regular bank oversight as the central bank believes it has gained sufficient understanding of the associated risks and how banks manage them.
WASHINGTON, Aug 15 (Reuters) - 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 banksmanage them.
