Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Federal Reserve Launches Novel Activities Supervision Program Targeting Digital Assets and Non-Bank Partnerships via Banks
Regulation | Aug 15, 2023
Image: Pixabay/sergeitokmakov
The Novel Activities Supervision Program is the Federal Reserve's latest initiative, signaling a transformative approach to banking oversight.
The Federal Reserve has launched the Novel Activities Supervision Program, targeting banking institutions to address the evolving challenges of modern finance. While financial innovations backed by new tech can benefit the U.S. economy and its consumers, they can also introduce new risks that might affect the stability and integrity of banking institutions.
The letter applies to all banking organizations supervised by the Federal Reserve, including those with $10 billion or less in consolidated assets to enhance the oversight of innovative activities undertaken by banking organizations under its supervision. The program will work in tandem with existing Federal Reserve supervisory teams. It will be risk-based, and the intensity of supervision will differ based on the level of engagement in innovative activities by each supervised banking organization.
See: The Federal Reserve Issues State Member Bank Guidance for ‘Dollar Tokens’ (Dollar-pegged Stablecoins)
Who's caught in scope?
- Partnerships with Non-Banks. Collaborations where a non-bank offers banking products and services to end-users, typically using technologies like application programming interfaces (APIs).
- Crypto-Asset Activities. This includes crypto-asset custody, crypto-backed lending, facilitating crypto trading, and involvement in stablecoin/dollar token issuance.
- DLT Projects. Exploration or utilization of DLT for various applications such as dollar token issuance and asset tokenization.
- Services to Crypto Entities and Fintechs. Banking organizations that primarily offer traditional banking services like deposits, payments, and lending to crypto-related entities and fintechs.
View the letter --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply