The Federal Reserve Novel Activities Supervision Program was a specialized initiative launched on August 8, 2023, by the Federal Reserve Board to enhance oversight of novel, high-risk activities conducted by banking organizations under its supervision. It focused on activities involving:

• Activities pertaining to cryptoassets, including custody, lending secured by cryptoassets, enabling trading in cryptoassets, and issuing or distributing stablecoin/dollar tokens.

• Initiatives involving distributed ledger technology (DLT), such as the tokenization of securities or other assets that could have a big effect on the financial sector.

• Intricate, technologically advanced alliances with non-banks (such as fintechs) to offer banking services, frequently utilizing tools like application programming interfaces (APIs).

• Dedicated banking services for fintechs and crypto-related organizations, including lending, payments, and deposits.

By incorporating specialized oversight within the Federal Reserve’s conventional framework, the program was intended to enhance current supervisory procedures rather than establish a distinct supervisory portfolio. In order to promote innovation while maintaining the safety and soundness of the banking system, it was risk-focused and customized supervision according to the size, risk, and complexity of operations at each institution.

According to the Board of Governors, the Federal Reserve announced the withdrawal of its Novel Activities Supervision Program on August 15, 2025. The Federal Reserve made the decision after determining that it had sufficiently understood the risks associated with the novel activities covered by the program, including distributed ledger technology (DLT), complex fintech partnerships, concentrated banking services for fintech and crypto entities, and activities related to crypto assets. In light of this, the supervision of these operations has been incorporated into the Federal Reserve’s regular supervisory structure, obviating the necessity for an independent, specialized program.

As part of this transition, the supervisory letter (SR 23-7) that created the program on August 8, 2023, was revoked. This action is in line with a more lenient regulatory approach toward fintech and cryptocurrency advances and represents a trend toward handling these operations under standard banking supervisory procedures.

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