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?

<a href="https://www.wionews.com/business-economy/gold-prices-steady-as-market-awaits-united-states-employment-report-253433">Gold</a> prices rose to their highest in nearly two weeks on Wednesday as US&nbsp;Senate measures on Hong Kong posed a potential roadblock for a trade deal between the United States and China, denting appeal for riskier assets.

Spot gold was up 0.3 per cent&nbsp;at $1,476.50 an ounce by 1015 GMT and US&nbsp;gold futures rose 0.2 per cent to $1,477.

"The US&nbsp;senate passing the Hong Kong democracy bill is raising the further risk of a trade deal running into problems and it's causing some renewed risk-off in the markets," said <a href="https://www.wionews.com/business-%26-economy/gold-locked-below-1300-as-market-braces-for-fed-meeting-143852">Saxo Bank </a>commodity strategist Ole Hansen.

"We see stocks trading weaker, bond yields moving lower and gold is ticking higher."

The US&nbsp;Senate passed two bills backing human rights in Hong Kong and banning the export of certain munitions to the region's police forces. China condemned the move and called for Washington to stop meddling in its internal affairs.

European stocks steered away from a recent peak and US&nbsp;10-year bond yields slipped to their lowest in nearly three weeks, also pressured by US&nbsp;President Donald Trump's threat to raise tariffs on Chinese imports if a trade deal cannot be reached with Beijing.&nbsp;

Investor eyes will also be on minutes from the <a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">US&nbsp;Federal Reserve'</a>s October policy meeting, due at 1900 GMT, for additional cues on the monetary policy outlook.

The US&nbsp;central bank cut interest rates three times this year to help to sustain US&nbsp;growth but last month signalled that there would be no further cuts unless the economy takes a turn for the worse.

"The market is pricing in one cut over the next 12 months and that will change very quickly on failure to reach a (trade) deal," Saxo Bank's Hansen added.

Lower interest rates reduce the opportunity cost for holding non-yielding bullion.

Spot gold could rise into a range of $1,480-$1,485 an ounce, according to Reuters technical analyst Wang Tao.

Elsewhere, silver was flat at $17.14, platinum was down 0.1 per cent at&nbsp;$909.14 and palladium was little changed at $1,764.50.

Palladium prices could continue to firm on supply issues, and $2,000 an ounce is a likely scenario for the autocatalyst metal next year, said Ross Norman, a London-based independent analyst.

The metal hit a record high of $1,824.50 on October&nbsp;30, buoyed by a sustained supply deficit.

Gold prices rose to their highest in nearly two weeks on Wednesday as US Senate measures on Hong Kong posed a potential roadblock for a trade deal between the United States and China, denting appeal for riskier assets.

Gold prices rose to their highest in nearly two weeks on Wednesday as US Senate measures on Hong Kong posed a potential roadblock for a trade deal between the United States and China, denting appeal for riskier assets. Spot gold was up 0.3 per cent at $1,476.50 an ounce by 1015 GMT and US gold futures rose 0.2 per cent to $1,477. "The US senate passing the Hong Kong democracy bill is raising the further risk of a trade deal running into problems and it's causing some renewed risk-off in the markets," said Saxo Bank commodity strategist Ole Hansen. "We see stocks trading weaker, bond yields moving lower and gold is ticking higher." The US Senate passed two bills backing human rights in Hong Kong and banning the export of certain munitions to the region's police forces. China condemned the move and called for Washington to stop meddling in its internal affairs. European stocks steered away from a recent peak and US 10-year bond yields slipped to their lowest in nearly three weeks, also pressured by US President Donald Trump's threat to raise tariffs on Chinese imports if a trade deal cannot be reached with Beijing. Investor eyes will also be on minutes from the US Federal Reserve's October policy meeting, due at 1900 GMT, for additional cues on the monetary policy outlook. The US central bank cut interest rates three times this year to help to sustain US growth but last month signalled that there would be no further cuts unless the economy takes a turn for the worse. "The market is pricing in one cut over the next 12 months and that will change very quickly on failure to reach a (trade) deal," Saxo Bank's Hansen added. Lower interest rates reduce the opportunity cost for holding non-yielding bullion. Spot gold could rise into a range of $1,480-$1,485 an ounce, according to Reuters technical analyst Wang Tao. Elsewhere, silver was flat at $17.14, platinum was down 0.1 per cent at $909.14 and palladium was little changed at $1,764.50. Palladium prices could continue to firm on supply issues, and $2,000 an ounce is a likely scenario for the autocatalyst metal next year, said Ross Norman, a London-based independent analyst. The metal hit a record high of $1,824.50 on October 30, buoyed by a sustained supply deficit.

Gold gains as souring US-China relations dent risk appetite

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Why did the Fed scrap the dedicated crypto oversight unit?

Gold gains as souring US-China relations dent risk appetite