August 25, 2025|Client Alerts
As Federal Government Works to Liberalize the Crypto Payment Regulatory Regime, Federal Reserve Eliminates Specialty Supervisory Program Focusing on Crypto
By Michael C. Flynn
In its Client Alert of August 4, 2025, Buchalter discussed the new Genius Act creating a regulatory regime for stable coin payments, and other steps as the federal government looks to create a more favorable crypto currency regulatory regime.
Now, the Federal Reserve has announced the ending of its supervisory program that oversaw banks’ crypto and fintech activities. In its announcement, The Fed emphasized that there was no longer a need for such a targeted supervisory program, because the Fed now had a better understanding of crypto, distributed ledger technology and fintech, and better understands related risks and bank risk management practices. The Fed stated: “the Board is integrating that knowledge and the supervision of those activities back into the standard supervisory process and is rescinding its 2023 supervisory letter creating the program.”
However, banks interested in or active in these areas should not assume that there will be no supervision of these activities. While these areas are now going to be a part of normal bank oversight, any novel or new bank activities bring regulatory attention, banks must still pay attention to risks of these activities as well as construct strong risk management programs around them.
Buchalter is a leading national law firm, with over 90 years of experience representing large, medium and small financial institutions in regards to transactions, products and regulatory needs. Buchalter’s Financial Institutions Law, Financial Institutions Regulatory and Technology Industry Groups have broad experience in financial services products and the use of new technologies. Any attorneys in those groups can assist you in navigating the intricacies of cryptocurrency regulation and products.
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