The cryptocurrency landscape was marked by a series of significant and contrasting events today, highlighting the industry’s ongoing dance between regulation, law enforcement, and government policy. The U.S. Federal Reserve announced a shift in its oversight of banks’ crypto activities, while Czech police made a dramatic arrest in a multi-million dollar Bitcoin bribery case. Capping the day, the U.S. Treasury Secretary walked back comments that had sent ripples through the market, reaffirming the government’s interest in acquiring Bitcoin.
US Federal Reserve to Integrate Crypto Oversight into Standard Supervision
In a notable policy shift, the U.S. Federal Reserve Board announced it is ending its “novel activities supervision program,” which was established in August 2023 specifically to monitor banks’ involvement with crypto-assets and distributed ledger technology (DLT).
In a formal notice, the Fed stated it will “sunset the program… and return to monitoring banks’ novel activities through the normal supervisory process.” The 2023 initiative was designed to be risk-focused, overseeing banks that provided services like deposits, payments, and lending to crypto-related companies and fintechs.
The central bank explained that its focused effort has paid off, leading to a deeper institutional understanding of the sector. “Since the Board started its program… the Board has strengthened its understanding of those activities, related risks, and bank risk management practices,” the statement read. “As a result, the Board is integrating that knowledge… back into the standard supervisory process.”
While this move signals a normalization of crypto-related banking activities rather than a complete withdrawal of oversight, it aligns with a broader trend of U.S. government agencies refining their approach to digital assets.
Czech Police Arrest Darknet Founder in $45 Million Bitcoin Bribery Scandal
A high-profile criminal case in the Czech Republic took a dramatic turn with the arrest of Tomas Jirikovsky, the convicted founder of the infamous darknet site Sheep Marketplace. The arrest is linked to a staggering $45 million Bitcoin donation (468 BTC) allegedly made to a former Justice Minister to evade a prison sentence, a scandal that led to the minister’s resignation earlier this year.
Chief State Prosecutor Radim Dragoun confirmed that authorities were “securing people and things” in a criminal case that was recently separated for independent proceedings.
Local reports painted a cinematic scene, with Deník N reporting that Jirikovsky attempted to evade capture by climbing onto the roof of his home during the police raid on Thursday night. His ex-wife confirmed the incident, stating she was alerted by a neighbor. Authorities successfully apprehended Jirikovsky and took him into custody.
Jirikovsky is a programmer known for creating Sheep Marketplace, an illegal online platform that facilitated the sale of drugs, weapons, and counterfeit goods, marking a significant victory for law enforcement in the fight against crypto-fueled crime.
US Treasury Reaffirms Bitcoin Buying Strategy After Market-Moving Comments
U.S. Treasury Secretary Scott Bessent moved quickly to clarify his department’s stance on acquiring Bitcoin for the nation’s strategic reserve after his earlier comments were widely interpreted as a halt to the plan.
In a post on X, Bessent stated, “Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world.’”
This clarification came just hours after an interview with FOX Business in which Bessent said, “We’re not going to be buying that.” His initial remark had an immediate impact on the market, causing Bitcoin’s price to drop from approximately $121,073 to a 24-hour low of $117,588. The price has since shown signs of recovery following his updated statement. The rapid market reaction underscores the immense weight that comments from top U.S. officials carry in the volatile crypto markets.
