On August 15, 2025, the Federal Reserve Board announced that it will sunset its novel activities supervision program and return to monitoring banks' novel activities through the normal supervisory process. Thus, it is rescinding its 2023 supervisory letter titled “Creation of Novel Activities Supervision Program.”
According to the Federal Reserve's press release, since the Board initiated its program to supervise specific crypto and fintech activities within banks, it has enhanced its understanding of these activities, the associated risks, and the risk management practices employed by banks. As a result, the Board is incorporating this knowledge and the supervision of these activities into the standard supervisory process.
The Fed’s announcement can be found here.