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- Fed shifts crypto oversight into standard supervision, ending its Novel Activities Program.
- Treasury confirms no new Bitcoin purchases, reserve built from seized assets.
- Market eyes both renewed corporate BTC adoption and meme coin presales like Maxi Doge.
The Federal Reserve announced on Friday that it has officially ended its Novel Activities Supervision Program, a 2023 framework designed to oversee banks’ involvement in emerging technologies such as cryptocurrency, distributed ledger technology (DLT), and complex fintech partnerships.
Fed Moves Oversight Into Standard Supervision
According to the central bank, activities once covered under the program—such as stablecoin issuance, tokenized securities, and crypto-related banking partnerships—will now fall under its regular supervisory processes. The Fed stated it has gained sufficient understanding of how banks manage risks tied to these innovations and is confident traditional oversight methods can balance stability with innovation.
The program had drawn on industry and academic expertise to create a tailored monitoring approach. Its dissolution signals the Fed’s belief that the banking system can support crypto-related activities without requiring additional layers of scrutiny.
Treasury Rules Out New Bitcoin Purchases
The announcement followed remarks from US Treasury Secretary Scott Bessent, who confirmed that the government will not purchase new Bitcoin for its planned strategic reserve. Instead, the reserve will be built solely from confiscated assets, currently estimated at $15–20 billion.
Bessent framed Bitcoin as a modern “store of value” to complement gold holdings but stressed that the reserve would not expand through fresh acquisitions. The decision caused a brief dip in Bitcoin prices, which fell as low as $116,856 before rebounding near $117,500.
Also Read: Federal Reserve Reverses Course, Withdraws Crypto-Unfriendly Banking Guidance
Market Reactions and Emerging Opportunities
With the Fed easing regulatory restrictions, analysts expect corporate adoption of Bitcoin and blockchain-based services to accelerate into late August. At the same time, retail traders are eyeing opportunities in new tokens such as Maxi Doge ($MAXI), a meme coin presale offering staking rewards and high-leverage trading incentives. The project has already raised over $1 million, nearing its funding target ahead of the next price increase.
The Fed’s decision to end the Novel Activities Supervision Program and the Treasury’s clarity on Bitcoin reserves highlight a shifting US regulatory stance: cautious but increasingly supportive of innovation. As oversight normalizes, the stage may be set for broader adoption of both established assets like Bitcoin and emerging speculative plays like Maxi Doge.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
