Fed Ends Crypto Supervision, Moves Oversight to Exams
The Federal Reserve has ended its dedicated crypto supervision program launched in August 2023 and will now oversee crypto activities under its standard bank examinations. With heightened understanding of digital asset risks such as stablecoins, tokenization and custody, the Fed no longer deems targeted crypto supervision necessary. Instead, routine exams will cover market volatility, legal uncertainties and other crypto risks alongside traditional banking operations.
This shift follows broader deregulation by U.S. regulators, including the removal of pre-approval rules and reputational risk criteria. Banks hesitant about crypto services may now apply through regular channels. The Fed will release details of its new monitoring framework in coming weeks.
Bullish
Removing a dedicated crypto supervision program reduces compliance friction and signals stronger regulatory confidence. In the short term, banks may accelerate crypto service launches, boosting trading volumes and liquidity. Over the long term, integrating digital assets into routine bank oversight fosters broader mainstream adoption and innovation in DeFi, stablecoins and tokenization. Together, these factors support positive sentiment and a bullish outlook for cryptocurrency markets.