Federal Reserve Scraps Program Overseeing Banks’ Crypto and Fintech Partnerships #
The U.S. Federal Reserve will eliminate a dedicated supervisory program that monitored banks’ dealings with fintechs and crypto firms, according to people familiar with the decision. The unit, established in 2022 after high-profile bank–fintech collaborations and concerns over digital asset risks, was tasked with scrutinizing partnerships to ensure compliance and manage emerging threats. Fed officials say oversight will continue but be folded into broader supervisory work, with no separate program or dedicated staff
The move has sparked debate: critics warn it could weaken protections amid rising fraud and regulatory arbitrage in the fintech sector, while supporters argue it reduces bureaucracy and streamlines bank supervision. The change reflects a broader rollback of specialized oversight programs under the Trump administration, which has sought to scale back regulation across financial services.