Federal Reserve Vice Chair Barr discusses lessons from novel-activity supervision

What changed

Vice Chair Michael Barr discussed the Federal Reserve’s supervisory approach to novel bank activities and the balance between innovation, risk controls, and consistent treatment.

Who it affects

• Banks, fintech and crypto counterparties, investment advisers, and clients

What is still open

• Whether the supervisory framework would be retained or revised

What it means for an advisor

• Use the speech as a policy signal only and continue diligence on bank counterparties’ novel-activity controls.