Federal Reserve Ends Special Oversight of Digital Assets in Banks

The Federal Reserve will officially sunset its special supervisory program for digital asset activities in U.S. banks and revert to its standard supervisory process.

Program Background

Launched in 2023, the program monitored banks’ involvement in crypto asset activities such as staking, payments, and lending to crypto-related entities and fintech firms.

“Having gained a deeper understanding of crypto-related risks and management practices, the Board will integrate digital asset supervision into the normal supervisory process and rescind its 2023 letter.” — Federal Reserve

What’s Changing

The Fed confirmed that the 2023 supervisory letter is being revoked. From now on, oversight of crypto-linked banking operations will be handled under the Fed’s routine supervision framework.

Impact on Banks and Regulation

This change doesn’t imply weaker oversight but signals a softer regulatory stance toward digital asset involvement. It reflects the Fed’s increased confidence in managing crypto-related risks within existing supervisory structures.