3/25/2026

Fed Normalizes Digital Asset Activity Within Banks Under Standard Supervision Facilitating Regulated Crypto And Tokenization

Regulation, Innovation · Federal Reserve (Speeches & Testimony)

Business, Finance & Industries · Mar 25, 2026

The Fed is shifting digital-asset oversight from a bespoke “novel activity” framework back into ordinary bank supervision—with withdrawn crypto-specific guidance, clarified capital and safekeeping rules, and a new pro-innovation stance—creating a clearer regulatory path for banks to offer stablecoins, tokenized deposits, safekeeping, and tokenized securities.


3/25/2026

Fed Signals Preference For Innovation Within The Regulated Banking Perimeter And Will Use Supervision To Deter Nonbank Migration

Regulation, Innovation · Federal Reserve (Speeches & Testimony)

Business, Finance & Industries · Mar 25, 2026

The Fed is signaling it wants financial innovation to occur within the regulated banking perimeter—using supervisory tools and potential enforcement to deter migration to less-regulated nonbanks—thereby favoring well-run incumbent banks as the preferred locus for scaling AI, tokenization, and embedded finance while creating regulatory headwinds for nonbank models that replicate core banking functions outside the prudential perimeter.


3/25/2026

AI In Banking Will Support Risk Management And Supervision With Human Oversight Not Replace Decision Makers

Regulation, Innovation · Federal Reserve (Speeches & Testimony)

Business, Finance & Industries · Mar 25, 2026

The Fed treats AI as both a bank efficiency/risk-management tool and a supervisory tool but insists human judgment remain decisive—creating a practical regulatory ceiling on fully autonomous AI in core prudential decisions and steering banks toward decision-support uses.


3/25/2026

Federal Reserve Increases Transparency In Supervisory Practices By Publishing Manuals And Procedures To Reduce Uncertainty For Banks And Fintechs

Regulation, Innovation · Federal Reserve (Speeches & Testimony)

Business, Finance & Industries · Mar 25, 2026

The Fed is shifting supervision toward transparency—publishing supervisory operating principles and formerly confidential bank manuals—to turn examiner-specific practices into public guidance and reduce uncertainty and regulatory risk for banks, fintechs, and investors around AI, digital assets, and partnerships.


3/25/2026

Fed Encourages Bank-Fintech Partnerships While Emphasizing Risk Management And Regulatory Clarity

Regulation, Innovation · Federal Reserve (Speeches & Testimony)

Business, Finance & Industries · Mar 25, 2026

The Fed supports bank–fintech partnerships as a way for community banks to access technology and markets but warns it will increase scrutiny—especially on risk allocation and consumer compliance—so only well-managed, transparent BaaS/embedded finance arrangements will be favored while lightly governed models face supervisory escalation and possible enforcement.