The Federal Reserve System (Fed) recently announced an important decision. After two years of implementation, the Fed has decided to terminate its "New Activity Supervision Program" on August 16, 2025. This program was launched in 2023 and aimed to strengthen regulation of banking institutions involved in the crypto assets and fintech sectors.

This decision reflects the Fed's deepening understanding of the relevant industry. Through observation and research during this period, regulators have gained a more comprehensive understanding of banks' business models, potential risks, and risk management practices in the emerging financial sector.

It is worth noting that this does not mean that the Fed has relaxed its regulation of crypto assets and the fintech sector. On the contrary, the Fed stated that it will reintegrate the regulatory responsibilities for these areas into the regular regulatory process. This move indicates that crypto assets and fintech have gradually become a regular part of banking operations and no longer require a special regulatory framework.

This change could have far-reaching effects on the banking industry and fintech companies. On the one hand, it may provide banks with greater space for innovation; on the other hand, it also requires banks to pay more attention to risk management of emerging financial technologies in their regular operations.

With this significant adjustment in the regulatory environment, the industry will closely watch how the Fed balances innovation and risk control within the regular regulatory framework, as well as how this change will affect the future development of financial technology.