Federal Reserve Shutters Group That Policed Banks’ Crypto Activities
The US Federal Reserve Board said it will close its “novel activities supervision program,” a group set up in 2023 to monitor banks’ involvement with companies in the crypto space. “Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices,” the Fed said in an Aug. 15 notice . Instead of a standalone initiative, the program will now integrate its “knowledge and the supervision of those activities into the standard supervisory process,” the Fed Board said. It will also rescind the 2023 supervisory letter that created the program. Fed Program Was Created In The Aftermath Of 2023 Crypto Collapse The initiative was set up five months after the collapse of three major US lenders that were closely situated with the crypto industry and tech startups, namely Silvergate Bank, Silicon Va...