The Federal Reserve is ending its “novel activities” supervision program for banks’ crypto dealings, a move many are calling a turning point for the industry.
This program, launched in 2023, was designed to keep a close watch on banks involved with crypto during a time of heavy regulatory scrutiny. Now, the Fed says it has learned what it needed, understands the risks better, and will fold crypto oversight into its standard supervision process.
Analysts are calling this “the end of Operation Choke Point,” suggesting it could open the doors for faster adoption of stablecoins and blockchain services by major banks like Morgan Stanley and Citigroup.
What does this mean?
For the crypto market: A shift away from restrictive oversight toward deeper integration with traditional finance.
For retail investors: Easier access to banking services, smoother on/off ramps, and more legitimacy for assets like Bitcoin and Ethereum.
For banks: No more “high-risk” label could speed up stablecoin custody, blockchain payments, and other crypto-enabled products — kicking off a new wave of competition.
This could be one of the biggest green lights the U.S. crypto sector has seen in years.