Demand Strong Oversight of Banks' Crypto Activities for Public Protection

The Federal Reserve's decision to sunset its 'novel activities supervision program'—which specifically monitored banks' crypto and fintech activities—comes amid a broader trend of regulatory rollback in the digital asset sector. With the Securities and Exchange Commission dropping investigations and the Treasury signaling a softer stance, the risks to consumers and the financial system are increasing.

Crypto assets and distributed ledger technologies remain volatile and largely unregulated, exposing everyday people to potential fraud, instability, and loss of savings. Without dedicated oversight, banks' relationships with crypto companies could go unchecked, undermining public trust and financial security.

We urge the Federal Reserve to prioritize the public interest by reinstating a transparent, risk-focused supervisory program for banks' crypto activities. Strong oversight is essential to protect consumers, prevent financial crimes, and ensure the stability of our banking system.