Federal Reserve hires controversial Novel Activities Supervision Program for monitoring crypto banks

Federal Reserve hires controversial Novel Activities Supervision Program for monitoring crypto banks

Federal Reserve stops "Novel Activities Supervision Program"

The Federal Reserve has decided to reopen the "Novel Activities Supervision Program" introduced in 2023. This program was originally launched to tighten the supervision of banks with crypto engagement.

The decision to reject the program could have far -reaching effects on the regulatory landscape for banks that are invested in the cryptocurrency market. While the program was initially considered necessary to control risks in connection with digital assets and ensure that banks react appropriately to the challenges that result from this aspiring technology, the reopening shows that the Federal Reserve may be considering a new approach to regulating the sector.

Banks were asked to implement stricter guidelines and compliance measures in dealing with crypto-assets in order to minimize potential risks to the financial system. The suspension of the program could therefore also raise questions about the future regulation of cryptocurrencies.

Overall, it remains to be seen how this decision will affect the crypto market and the banking landscape, especially in times of growing uncertainty and regulatory pressure in many parts of the world.