BREAKING: Fed Ends Crypto Supervision Program — A Historic Policy Shift 🔥 | What It Means for the Crypto Market, Retail Investors, and Banks? 🏦

💥 Fed Pulls the Plug on ‘Novel Activities’ Program

In a major shake-up for U.S. crypto policy, the Federal Reserve announced Friday it will end its two-year-old “novel activities” supervision program — created to monitor banks’ crypto and fintech dealings. Oversight will now be integrated into the Fed’s regular bank supervision process, in line with President Donald Trump’s goal to make the U.S. the “crypto capital of the world.”

📜 From Crackdown to Integration

Launched in 2023, the program closely tracked bank involvement in digital assets during a time of regulatory tension. Now, citing “valuable insights” gained and improved risk understanding, the Fed says the dedicated oversight is no longer necessary.

🚀 Crypto Analysts see a Win

Market analyst MartyParty called the decision “the end of Operation Choke Point” — a term used to describe alleged efforts to cut crypto off from banking.

Industry watchers say this move could fast-track adoption of stablecoins and other digital assets by major U.S. banks like Morgan Stanley and Citigroup.

📈 What It means for the Crypto market, Retail Investors and Banks?

🌐🚪For the crypto market , this signals a potential end to the era of restrictive oversight and opens the door for deeper integration of digital assets into traditional finance.

💰 🏦For Retail Investors , it could mean wider access to banking services , easier on/off-ramps 🔄, and increased legitimacy ✅ for assets like Bitcoin ₿ and Ethereum ♦.

🏛️🚀For banks , the removal of a separate “high-risk” classification could accelerate product launches , from stablecoin custody to blockchain-based payment systems — setting the stage for fierce competition in crypto-enabled banking services.

#Fed

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