Federal Reserve Withdraws Oversight Plan for Banks’ Crypto and Fintech Activities

Foresight News reports that the Federal Reserve Board has announced it will terminate its innovation activities supervision program and return to monitoring bank innovation activities through standard regulatory procedures. Since the Board launched the program to supervise specific cryptocurrency and fintech activities of banks, its understanding of these activities, the associated risks, and banks’ risk management practices has deepened. As a result, the Board is reintegrating this knowledge and the supervision of these activities into the standard regulatory process and is rescinding the supervisory letter issued when the program was established in 2023.