Regulatory Cuts Challenge Financial Stability Amid Novel Payment Models
Federal regulatory bodies are facing significant workforce reductions, impacting their ability to oversee novel payment activities. The Federal Reserve's Supervision and Regulation division has reduced staff by 30%, and the Novel Activities Supervision program has been sunsetted. This program was responsible for overseeing fintech partnerships, crypto-asset operations, and blockchain projects. As fintechs transition from bank partners to competitors, traditional financial institutions must enhance their internal protections to mitigate systemic risks. 
