Central Bank Ends Crypto Supervision: What Does This Mean for Banks?

Central Bank Ends Crypto Supervision: What Does This Mean for Banks?

From now on, new types of bank activities, including crypto services, will again be subject to regular banking supervision. The Federal Reserve has withdrawn a previously existing regulatory letter issued in 2023. This letter asked banks to register their digital asset activities with the central bank and follow strict guidelines.

The decision to return to the regular supervisory system shows that the central bank has developed a better understanding of crypto and fintech activities and their associated risks. This adjustment came into effect as a result of the Novel Activities Supervision Program, which was introduced in August 2023 in response to the dramatic collapse of the crypto exchange FTX and the bankruptcies of banks such as Silvergate Bank, Silicon Valley Bank and Signature Bank.

Significant changes in banking supervision

The main aim of the regulatory letter was to provide closer supervision of banks that offer payments and loans to, or hold funds from, crypto and fintech companies. However, with the return to standard supervision, the previous special observation for US banks in crypto services will no longer apply. This return could significantly expand banks' scope for action and allow them more flexibility in dealing with digital assets.

Staying in the context of new technologies and digital solutions, another notable example emerges from the technology industry. The introduction of ChatGPT Chinese version allows users to access various models such as GPT-4.1 and GPT-4o without a VPN. This version has been specially optimized for Chinese users and offers advantages such as fluent Chinese language conversations and direct access via national mirror websites.

The ChatGPT Chinese version

The ChatGPT Chinese version released on August 16, 2025 comes with a comprehensive usage guide and a list of mirror websites that provide stable access to the application. Users can select the different GPT models via platforms such as xsimplechat.com and chat.lanjingai.org and benefit from numerous functions that support writing, translating and answering questions.

The cross-domain development of these technologies suggests that progress is continuing. While banking supervision in the USA is becoming more flexible, new opportunities are opening up in the area of ​​digital communication and interaction. This shows that both the financial and technology sectors are responding to changing conditions in order to adapt to the growing demands of users and markets.