Increased autonomy for banks in managing crypto activities.
The Federal Reserve Board announced the termination of its Novel Activities Supervision Program, initiated in 2023, to regulate cryptocurrency businesses and fintech activities in the banking sector.
This change integrates oversight into standard procedures, easing regulatory restrictions on cryptocurrency, potentially impacting BTC and ETH as banks opt for enhanced crypto engagement.
The Federal Reserve’s decision marks a shift away from heightened oversight. The Novel Activities Supervision Program, initiated to better understand and monitor cryptocurrency engagements through banks, is discontinued. Returning oversight to standard procedures aligns with a broader regulatory relaxation evidenced throughout 2025. US regulators eased previous restrictions in April.
The relaxation in regulations empowers banks to decide independent engagement levels with cryptocurrency, emphasizing existing risk management frameworks. Notably, mainstream cryptocurrencies like BTC and ETH could see reduced compliance barriers as a result.
Market stakeholders are assessing potential impacts, though notably few immediate reactions have surfaced. Michelle Bowman, Vice Chair for Supervision, has previously voiced support for innovation, aligning with this regulatory adjustment.
Regulators must be open to innovation in the banking system. — Michelle Bowman, Vice Chair for Supervision, Federal Reserve
Did you know? In April 2025, the Federal Reserve, OCC, and FDIC rolled back requirements for banks to obtain prior approval for cryptocurrency services, further easing regulatory constraints in the financial system.
Bitcoin, currently valued at $117,450.98 with a market cap of $2.34 trillion, represents 59.06% of the market, according to CoinMarketCap. Its 24-hour trading decreased by 26.42%, and price activity reflects modest variation within the past 90 days.
Coincu research indicates that this development may prompt more banks to integrate digital assets, driven by relaxed compliance pressures. The supervisory shift could encourage diversification in banking services aligned with evolving technology and consumer needs, foreseeing broader engagement with blockchain innovations. US banks can now potentially integrate more crypto activities into their offerings, aligning with the ongoing trend of increased autonomy.
