The Federal Reserve said it is dismantling the “Novel Activities” Supervision Program—created in 2023 to give banks’ crypto- and fintech-related business heightened scrutiny—and folding that work into its routine oversight of lenders. The move rescinds supervisory letter SR 23-7, which had required banks to provide prior notice before engaging in activities such as crypto custody, stablecoin issuance or tokenisation projects. In a statement, the Board said it had “strengthened its understanding” of the risks and controls tied to digital-asset services and can now monitor them through the normal supervisory process. The decision follows similar steps by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., which in April withdrew guidance that had compelled banks to seek regulators’ approval before offering crypto services. The shift marks a further relaxation of U.S. banking oversight of digital assets under President Donald Trump’s second term, and aligns the Fed’s stance with other regulators that are moving to treat crypto activities as part of conventional banking risk management frameworks.