#Fed Ends Novel Activities Supervision#


The "novel activities supervision" program, launched in 2023 to specifically oversee banks' innovative activities such as crypto and fintech, has been terminated by the Federal Reserve.
From now on, such activities will be monitored not only through a separate process but also integrated into the Fed's daily oversight routine.

This step indicates that the Fed has sufficiently grasped the risks in this area and no longer requires a special oversight mechanism.
So "crypto regulation" is no longer special; it is becoming a normalized process.

According to this development:
• Banks can approach crypto and fintech transactions in a faster and more predictable manner.
• Even the regulator is moving this sector from the "high risk" category to the "daily" activities category.

What do you think this means?
1. Will the adaptation to crypto accelerate?
2. Or does this step bring along a regulatory gap?
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