The US Federal Reserve has announced it will shut down its dedicated program for overseeing banks’ involvement in cryptocurrencies and financial technology, folding the work into its broader supervisory framework. The decision marks a significant shift in how America’s top banking regulator approaches emerging technologies.&nbsp;According to Reuters, the Fed confirmed on Friday that it will end its “novel activities supervision program,” which was set up in 2023 to specifically monitor how banks engage with crypto firms, blockchain projects and other fintech ventures. At the time, regulators were concerned about gaps in oversight as digital assets and new financial platforms moved deeper into the mainstream banking system.<h2>From experiment to integration</h2>The Fed said the program has now served its purpose. Over the past two years, central bank examiners have gained experience in assessing risks tied to digital assets, distributed ledger technologies, and bank partnerships with fintechs. That knowledge will now be absorbed into routine bank supervision, rather than sitting in a standalone unit.&nbsp;“The Federal Reserve has strengthened its understanding of these risks and how banks manage them,” the central bank said in its announcement, as quoted by Reuters. The move reflects growing confidence that crypto and fintech exposures can be handled within the Fed’s existing supervisory framework, rather than requiring a siloed structure.<h2>Regulatory backdrop</h2>The novel activities program was launched at a time of turmoil in crypto markets. The collapse of major firms in 2022 and 2023, including FTX, triggered a wave of scrutiny in Washington and prompted regulators to tighten their guard. Banks were warned repeatedly that their crypto dealings would be subject to higher review.&nbsp;In parallel, other regulators such as the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) also began highlighting the risks of digital assets to traditional finance. By scrapping the dedicated program, the Fed is signalling that crypto and fintech oversight is maturing into the normal course of supervision, rather than remaining an outlier.<h2>Industry and policy implications</h2>For banks, the decision could streamline compliance, since crypto activities will now be examined alongside their other business lines. For policymakers, it highlights a shift from experimental oversight to mainstream integration, suggesting that digital finance is no longer treated as a novelty, but as part of the broader banking landscape.&nbsp;Still, the move comes at a delicate moment. President Donald Trump’s administration has leaned toward a lighter regulatory stance on crypto, while Democrats in Congress continue to call for stricter guardrails. Analysts told Reuters that how the Fed embeds its crypto expertise into traditional oversight will be closely watched by markets and lawmakers alike.&nbsp;With the program gone, the Fed’s next challenge will be balancing innovation with financial stability, ensuring banks can explore fintech partnerships and blockchain solutions without exposing the wider system to untested risks.&nbsp;(With inputs from the agencies)&nbsp;

The program, started in 2023 amid concerns about oversight gaps, has fulfilled its purpose as examiners have gained knowledge on risks associated with digital assets. 

The US Federal Reserve has announced it will shut down its dedicated program for overseeing banks’ involvement in cryptocurrencies and financial technology, folding the work into its broader supervisory framework. The decision marks a significant shift in how America’s top banking regulator approaches emerging technologies. According to Reuters, the Fed confirmed on Friday that it will end its “novel activities supervision program,” which was set up in 2023 to specifically monitor how banks engage with crypto firms, blockchain projects and other fintech ventures. At the time, regulators were concerned about gaps in oversight as digital assets and new financial platforms moved deeper into the mainstream banking system. From experiment to integration The Fed said the program has now served its purpose. Over the past two years, central bank examiners have gained experience in assessing risks tied to digital assets, distributed ledger technologies, and bank partnerships with fintechs. That knowledge will now be absorbed into routine bank supervision, rather than sitting in a standalone unit. “The Federal Reserve has strengthened its understanding of these risks and how banks manage them,” the central bank said in its announcement, as quoted by Reuters. The move reflects growing confidence that crypto and fintech exposures can be handled within the Fed’s existing supervisory framework, rather than requiring a siloed structure. Regulatory backdrop The novel activities program was launched at a time of turmoil in crypto markets. The collapse of major firms in 2022 and 2023, including FTX, triggered a wave of scrutiny in Washington and prompted regulators to tighten their guard. Banks were warned repeatedly that their crypto dealings would be subject to higher review. In parallel, other regulators such as the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) also began highlighting the risks of digital assets to traditional finance. By scrapping the dedicated program, the Fed is signalling that crypto and fintech oversight is maturing into the normal course of supervision, rather than remaining an outlier. Industry and policy implications For banks, the decision could streamline compliance, since crypto activities will now be examined alongside their other business lines. For policymakers, it highlights a shift from experimental oversight to mainstream integration, suggesting that digital finance is no longer treated as a novelty, but as part of the broader banking landscape. Still, the move comes at a delicate moment. President Donald Trump’s administration has leaned toward a lighter regulatory stance on crypto, while Democrats in Congress continue to call for stricter guardrails. Analysts told Reuters that how the Fed embeds its crypto expertise into traditional oversight will be closely watched by markets and lawmakers alike. With the program gone, the Fed’s next challenge will be balancing innovation with financial stability, ensuring banks can explore fintech partnerships and blockchain solutions without exposing the wider system to untested risks. (With inputs from the agencies)

The US Federal Reserve will end its dedicated program overseeing banks' involvement in cryptocurrencies and fintech, integrating these responsibilities into its broader supervisory framework.

Why did the Fed scrap the dedicated crypto oversight unit?

Bitcoin has surged to historic new heights, smashing through the $120,000 level for the first time ever, as traders across the world bet big on looming policy changes out of Washington. According to Reuters, Bitcoin touched a record of $122,571 on Monday before trading slightly below that peak. The move capped weeks of mounting optimism among investors who see the US finally moving to deliver clear regulatory rules for digital assets.&nbsp;Market watchers say the breakout isn’t just technical hype, but the result of a confluence of bullish drivers, from President Donald Trump’s vocal embrace of crypto to heavy institutional buying and growing demand from Asia.<h2>Betting on US clarity: Crypto Week begins</h2>Much of the enthusiasm centres on what’s happening this week in Washington. The US House of Representatives has declared it “Crypto Week”—a high-profile push to debate and potentially pass legislation that could define the future of the industry. According to Reuters, the legislative calendar includes several bills that crypto advocates have been lobbying for over years. Among the most anticipated is the so-called Genius Act, which would finally establish federal rules for stablecoins, a key requirement for integrating crypto with the traditional financial system.&nbsp;Other proposals on the table include the Clarity Act, aiming to set clearer guardrails for how tokens are classified, and the Anti-CBDC Surveillance State Act, which seeks to limit government overreach via central bank digital currencies. Bloomberg reports that crypto industry leaders see the week as a make-or-break moment: either US lawmakers deliver the regulatory certainty the sector craves, or risk seeing innovation move offshore.<h2>Trump’s role in the rally</h2>Bitcoin’s rally has also been powered by President Trump’s unexpected embrace of the sector. Having once called crypto a threat, Trump now brands himself the “crypto president” and has been urging Congress to deliver the legal framework the industry wants.&nbsp;Reuters quotes IG market analyst Tony Sycamore as saying Trump’s pro-crypto pivot is one of the “tailwinds” pushing Bitcoin higher, alongside strong institutional demand and positive momentum across global markets. “It’s been a very strong move over the past week,” Sycamore noted. “It’s hard to see where it stops now.”&nbsp;Meanwhile, Bloomberg highlights that Bitcoin’s resurgence coincides with a broader “risk-on” mood, with stocks also hitting record highs. This environment has helped Bitcoin reassert itself as not just a speculative punt but a potential hedge against broader economic uncertainty.<h2>Not just Bitcoin: crypto market booms</h2>The bullish sentiment isn’t limited to Bitcoin. Reuters reports that Ether, the world’s second-largest cryptocurrency, has climbed to over $3,050, its highest in more than five months. Other tokens like XRP and Solana also saw gains of around 3 per cent each. The entire crypto sector’s market value has swollen to roughly $3.81 trillion, according to CoinMarketCap data.&nbsp;In Asia, demand is also booming. Bloomberg reports that spot Bitcoin ETFs in Hong Kong, launched by China AMC and Bosera, hit record highs on Monday. Meanwhile, Ether ETFs in the city jumped more than 2 per cent, highlighting the global reach of this rally.<h2>A shift in perception</h2>What’s striking to many analysts is how Bitcoin’s image is evolving. Once dismissed as purely speculative, it is increasingly seen as a legitimate store of value, even by some institutional and sovereign players. As OKX’s Singapore CEO Gracie Lin told Reuters, “We’re seeing increasing participation from Asia-based family offices and wealth managers.” She added that this reflects a “structural shift” in how Bitcoin is perceived globally.&nbsp;Bloomberg also quotes George Mandres of XBTO Trading describing the move as a sign of Bitcoin’s maturation into a “macro hedge and a structurally scarce store of value,” boosted by significant flows into spot Bitcoin and Ethereum ETFs.<h2>Is this sustainable?</h2>Not everyone is convinced this rally is built to last. Bloomberg notes that some analysts see it as an “isolated event,” driven more by short-term positioning than deep fundamental changes. Yet even sceptics acknowledge that the combination of Trump’s backing, US policy momentum, and rising demand from Asia could sustain prices at elevated levels, at least for now.&nbsp;For Bitcoin, breaking $120,000 is undeniably a landmark. But as Crypto Week unfolds in Washington, the real test will be whether lawmakers can finally deliver the clear, investor-friendly framework that the industry says it needs to keep growing. &nbsp;

Trump crypto pivot and rising demand from Asia fuel Bitcoin record-breaking rally, with spot ETFs hitting highs in Hong Kong. Bitcoin breakout lifts entire crypto market to $3.81T, with Ether, Solana, and XRP gaining amid bullish sentiment and record ETF inflows.

Bitcoin has surged to historic new heights, smashing through the $120,000 level for the first time ever, as traders across the world bet big on looming policy changes out of Washington. According to Reuters, Bitcoin touched a record of $122,571 on Monday before trading slightly below that peak. The move capped weeks of mounting optimism among investors who see the US finally moving to deliver clear regulatory rules for digital assets. Market watchers say the breakout isn’t just technical hype, but the result of a confluence of bullish drivers, from President Donald Trump’s vocal embrace of crypto to heavy institutional buying and growing demand from Asia. Betting on US clarity: Crypto Week begins Much of the enthusiasm centres on what’s happening this week in Washington. The US House of Representatives has declared it “Crypto Week”—a high-profile push to debate and potentially pass legislation that could define the future of the industry. According to Reuters, the legislative calendar includes several bills that crypto advocates have been lobbying for over years. Among the most anticipated is the so-called Genius Act, which would finally establish federal rules for stablecoins, a key requirement for integrating crypto with the traditional financial system. Other proposals on the table include the Clarity Act, aiming to set clearer guardrails for how tokens are classified, and the Anti-CBDC Surveillance State Act, which seeks to limit government overreach via central bank digital currencies. Bloomberg reports that crypto industry leaders see the week as a make-or-break moment: either US lawmakers deliver the regulatory certainty the sector craves, or risk seeing innovation move offshore. Trump’s role in the rally Bitcoin’s rally has also been powered by President Trump’s unexpected embrace of the sector. Having once called crypto a threat, Trump now brands himself the “crypto president” and has been urging Congress to deliver the legal framework the industry wants. Reuters quotes IG market analyst Tony Sycamore as saying Trump’s pro-crypto pivot is one of the “tailwinds” pushing Bitcoin higher, alongside strong institutional demand and positive momentum across global markets. “It’s been a very strong move over the past week,” Sycamore noted. “It’s hard to see where it stops now.” Meanwhile, Bloomberg highlights that Bitcoin’s resurgence coincides with a broader “risk-on” mood, with stocks also hitting record highs. This environment has helped Bitcoin reassert itself as not just a speculative punt but a potential hedge against broader economic uncertainty. Not just Bitcoin: crypto market booms The bullish sentiment isn’t limited to Bitcoin. Reuters reports that Ether, the world’s second-largest cryptocurrency, has climbed to over $3,050, its highest in more than five months. Other tokens like XRP and Solana also saw gains of around 3 per cent each. The entire crypto sector’s market value has swollen to roughly $3.81 trillion, according to CoinMarketCap data. In Asia, demand is also booming. Bloomberg reports that spot Bitcoin ETFs in Hong Kong, launched by China AMC and Bosera, hit record highs on Monday. Meanwhile, Ether ETFs in the city jumped more than 2 per cent, highlighting the global reach of this rally. A shift in perception What’s striking to many analysts is how Bitcoin’s image is evolving. Once dismissed as purely speculative, it is increasingly seen as a legitimate store of value, even by some institutional and sovereign players. As OKX’s Singapore CEO Gracie Lin told Reuters, “We’re seeing increasing participation from Asia-based family offices and wealth managers.” She added that this reflects a “structural shift” in how Bitcoin is perceived globally. Bloomberg also quotes George Mandres of XBTO Trading describing the move as a sign of Bitcoin’s maturation into a “macro hedge and a structurally scarce store of value,” boosted by significant flows into spot Bitcoin and Ethereum ETFs. Is this sustainable? Not everyone is convinced this rally is built to last. Bloomberg notes that some analysts see it as an “isolated event,” driven more by short-term positioning than deep fundamental changes. Yet even sceptics acknowledge that the combination of Trump’s backing, US policy momentum, and rising demand from Asia could sustain prices at elevated levels, at least for now. For Bitcoin, breaking $120,000 is undeniably a landmark. But as Crypto Week unfolds in Washington, the real test will be whether lawmakers can finally deliver the clear, investor-friendly framework that the industry says it needs to keep growing.

Bitcoin hits a record high of $122,571 as investors rally behind US regulatory clarity, Trump’s crypto pivot, and booming global demand.

Bitcoin breaks $120,000 barrier as US launches ‘Crypto Week’

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Why did the Fed scrap the dedicated crypto oversight unit?

Bitcoin breaks $120,000 barrier as US launches ‘Crypto Week’