The Federal Reserve (Fed) announced it will shut down its program with additional scrutiny over crypto and fintech activities.

On an August 15 statement, the central bank said it will sunset the Novel Activities Supervision Program and return to monitoring banks’ crypto and fintech activities through standard supervisory processes.

The Fed established the specialized program in August 2023 to enhance oversight of banking organizations engaging in crypto activities, distributed ledger technology projects, and complex technology partnerships with non-banks. 

The program targeted activities that regulators deemed novel and potentially risky to financial stability.

The Fed stated:

“Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices.”

The regulator will integrate knowledge gained from the program into standard supervisory processes while rescinding the 2023 supervisory letter that created the initiative.

The program’s dissolution follows several pro-cryptocurrency moves by federal regulators this year. 

The Federal Reserve Board removed reputational risk from its bank supervision program on June 23, ordering staff to strike the term from examination manuals and concentrate on measurable financial exposures.

The Fed’s move positions the central bank alongside the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, which made similar changes this year. 

The coordinated revisions eliminate a subjective standard that experts said allowed examiners to block banking services to crypto firms and prevented banks from offering basic crypto-related services.

Furthermore, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation released a joint statement explaining how existing banking rules apply when institutions custody crypto for customers. 

The guidance describes safekeeping as holding digital assets on clients’ behalf while stressing that it does not create new supervisory demands.

Regulators instructed boards and executives to view crypto custody as a service that relies on exclusive control of private keys and other sensitive data, requiring banks to prove no other party can unilaterally move assets once they enter custody.

Fed Chair Jerome Powell laid the groundwork for the regulatory shift in an April 16 speech. In it, he urged Congress to establish a stablecoin framework and stated that the Fed does not intend to limit lawful relationships between banks and crypto firms. 

Powell acknowledged that regulators adopted a conservative stance after the 2022 market failures but indicated that some guidance may be relaxed to accommodate responsible innovation.

The program’s end represents a broader normalization of crypto banking supervision as regulators gain confidence in their understanding of digital asset risks and develop clearer frameworks for institutional participation in crypto markets.

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Ripple CEO Brad Garlinghouse has officially confirmed that the company has bought Rail, a payment infrastructure provider that focuses on stablecoins, for $200 million. The idea is to make Ripple stronger in the enterprise digital payments space, and if everything goes according to plan, it should all be wrapped up by the end of 2025, pending any last-minute regulatory checks.

Garlinghouse called the move a big step in Ripple’s stablecoin strategy, saying that the integration of Rail will make Ripple the go-to infrastructure provider for institutions settling payments via stablecoins. 

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Rail brings capabilities such as virtual accounts, third-party payment support and treasury automation, which will all be rolled into Ripple’s existing payment network and API stack.

This news comes at a time when Ripple’s own stablecoin, RLUSD, is starting to gain popularity. RLUSD is now ranked 105th among all crypto assets by market cap, with a circulating supply of 612.74 million, a market cap of $612.71 million and 24-hour trading volume of $45.26 million. 

RLUSD is trading just below PayPal’s PYUSD and is quickly rising up the stablecoin leaderboard.

$3 billion out

Ripple runs one of the world’s largest digital asset payment platforms, with over 60 active licenses and a network that supports both XRP and other digital assets. The Rail acquisition adds infrastructure for stablecoin flows without requiring users to hold crypto directly.

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Ripple has already spent over $3 billion on strategic acquisitions, and this latest move clearly shows a push to control stablecoin settlement infrastructure on a large scale, now backed by a growing live token.

Spot Ethereum exchange-traded funds (ETFs) available in the US saw $152.3 million in outflows on Aug. 1, ending their longest streak of inflows.

According to Farside Investors’ data, the outflow amount was the largest since Jan. 8. It ended the 20-day streak of positive netflows for Ethereum ETFs, which have accumulated nearly $5.4 billion during the period.

The ended streak is not only the largest in duration, but also in total amount of inflows and average daily flow, which was approximately $270 million.

The previous record in duration was 19 days straight, which ended on June 13 and resulted in roughly $1.4 billion captured, with an average of $73 million per day.

However, it was largely eclipsed by the 18-day record that ended on December 19 and inched close to $2.5 billion, resulting in nearly $139 million per day on average.

James Butterfill, head of research at CoinShares, pointed out macroeconomic events as the likely causes for August 1 outflows. He noted last week’s statements by the Federal Open Market Committee (FOMC) and the strong economic data.

ETHA levels up

Until June 30, Ethereum ETFs registered around $4.3 billion in inflows. By adding close to $5.4 billion in positive net flows last month, Ethereum ETFs increased their flows by 126%.

BlackRock’s ETHA was the main reason behind the growth of Ethereum ETFs. As reported by Bloomberg senior ETF analyst Eric Balchunas, ETHA was the third-largest ETF by inflows in July, registering close to $4.2 billion and representing 78% of the total.

BlackRock’s Bitcoin ETF, IBIT, and Vanguard S&P 500 ETF (VOO) were the two funds besting ETHA. 

Usually, Balchunas calls the high flows into VOO and IBIT as “beta with a side of Bitcoin.” Yet, he highlighted on August 4:

“Top 3 ETFs (out of 4,432) in one month flows: $VOO, $IBIT, $ETHA. I used to say ‘Beta with a side of Bitcoin’ to describe this (which was most of 2024 leaderboard) but need a new phrase, ideally an aliteration, to incl Ether. If you think of anything i’m all ears.”

As of August 1, ETHA shows over $9.7 billion in cumulative flows. 

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Singapore fined nine financial firms, including UBS and Citigroup, S$27.5 million ($21.5 million) after a probe into the country’s largest money laundering scandal, which involved the seizure of assets ranging from luxury real estate to cryptocurrency.

The Monetary Authority of Singapore (MAS) announced that Credit Suisse’s local unit, now part of UBS, faced the biggest penalty of S$5.8 million for gaps in anti-money laundering (AML) controls, Bloomberg reported. Citigroup’s Singapore business was also fined for compliance lapses.

The enforcement wraps up a two-year investigation into a sprawling S$3 billion ($2.2 billion) case revealed in 2023.

Ten individuals of Chinese origin, dubbed the Fujian gang, were convicted, while two ex-bankers were charged last year for their involvement.

Authorities seized cash, property, high-end goods, and cryptocurrency linked to the case. Involved firms are taking remedial steps, and the regulator plans to monitor progress closely.

Cointelegraph, one of the leading crypto media platforms, has confirmed a front-end security breach that exposed its users to a malicious pop-up urging them to connect their wallets.

The incident, which occurred on June 22, involved scammers promoting a fake Cointelegraph token (CTG) and a counterfeit initial coin offering (ICO) campaign.

Scam Sniffer, a blockchain security platform, first flagged the compromise, noting that the attackers aimed to deceive users into granting wallet access. Once connected, these wallets could be drained of assets.

Scam Sniffer traced the exploit to a JavaScript payload embedded via the site’s advertising infrastructure. The code appeared to come from a domain resembling AdButler, though it had been recently registered and linked to a malicious script hidden within a banner advertisement.

In a public statement, Cointelegraph acknowledged the issue and warned users not to interact with pop-ups promoting “CTG tokens” or “CoinTelegraph ICO airdrops.”

The platform emphasized that it is actively investigating and working to remove the malicious code. Users were advised not to enter personal details or connect wallets to any prompts on the site.

CoinMarketCap faced similar exploits

This incident follows a similar attack on CoinMarketCap just two days prior.

On June 20, the crypto data provider briefly experienced a front-end breach that resulted in a fake wallet prompt appearing on its homepage.

CoinMarketCap traced the vulnerability to a doodle image linked to unauthorized JavaScript, which briefly disrupted the site’s interface. It noted:

“Our security team identified a vulnerability related to a doodle image displayed on our homepage. This doodle image contained a link that triggered malicious code through an API call, resulting in an unexpected pop-up for some users when visited our homepage.”

While the message on each site differed, both cases followed a near-identical delivery mechanism: a deceptive pop-up disguised as a platform feature. This may indicate a coordinated campaign targeting high-traffic crypto websites using ad-based JavaScript exploits.

Security experts pointed out that the twin breaches highlight a growing trend of attackers exploiting trusted platforms to execute wallet-draining schemes. As a result, they urged crypto users to remain cautious, avoid interacting with unknown dApps, and regularly monitor wallet activity to stay safe.

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OpenSea just flipped the switch on its biggest update yet. The platform has officially completed its public beta and relaunched as “OS2″—a fully rebuilt marketplace that opens up the full token universe. Now, users can trade not only NFTs but also fungible tokens across 19 different blockchains.

Alongside this relaunch comes a brand-new rewards program called Voyages, which gives users XP for their on-chain activity. Whether you’re collecting NFTs, swapping tokens, or curating galleries, every move earns you points.

It’s all part of OpenSea’s mission to become the go-to place to discover, own, and trade anything onchain. And with the highly anticipated SEA token airdrop on the way, both old and new users have something to look forward to.

Key Takeaways

• OpenSea is now OS2, a revamped platform that supports trading across 19 blockchains—not just Ethereum.

• It’s more than NFTs now: users can also trade fungible tokens, including those on Solana.

• A new rewards system called Voyages gives users XP points for actions like buying NFTs or swapping tokens.

• SEA, OpenSea’s new token, will be airdropped to past and current users based on their activity.

• Crypto regulations in the U.S. might be softening under the current administration, which could help platforms like OpenSea grow.

• Other projects are doing the same: Pudgy Penguins’ PENGU token recently made headlines with a huge launch.

What’s New with OS2

OpenSea’s relaunch isn’t just a fresh coat of paint—it’s a full rebuild. CEO Devin Finzer said, “OpenSea isn’t just an NFT marketplace anymore. We’re building the best place to discover, own, and trade anything onchain.” It’s now open to everyone after a successful public beta.

It now supports 19 different blockchains and lets users trade more than just NFTs. It’s added tools for minting, made transactions faster, reduced fees, and improved the way assets are discovered. Some old restrictions, like bans and delisted collections, have also been lifted.

Source: OpenSea

Meet Voyages: OpenSea’s New Rewards Program

To make the platform more fun and rewarding, OpenSea has launched Voyages. It’s a new system where users earn XP—or Experience Points—for taking part in the community.

That could mean swapping tokens, collecting NFTs, or even curating galleries. Think of it as gamifying your activity, turning everyday actions into chances to earn.

(XP points are a way to track and reward your engagement across the platform—like a loyalty program but Web3-style.)

SEA Token: What We Know So Far

The SEA token will be the heart of the new OpenSea ecosystem. Although there’s no exact launch date yet (as of May 2025), OpenSea has made it clear: both longtime and recent users will be eligible for a SEA token airdrop.

The token will be introduced after key features go live, so that it offers lasting value from day one. Even more encouraging? SEA will be available in many countries, including the U.S.—despite the ongoing uncertainty around crypto regulations.

Why Now? And Why It Matters

This relaunch comes at a pivotal time. OpenSea has been facing stiff competition from platforms like Blur and Magic Eden. In 2024, it also dealt with lawsuits and questions about whether NFTs and tokens should be treated as securities.

But the regulatory mood in the U.S. seems to be shifting. DonaldTrump has talked about making the country “the world’s crypto capital,” and recent leadership changes at major regulatory agencies suggest a more relaxed approach to oversight.

OpenSea’s SEA launch echoes moves by other big players. Take Pudgy Penguins, for example—their PENGU token hit a $3.5 billion market cap shortly after launch, before stabilizing around $620 million.

Legacy OpenSea vs. OS2: What’s Changed?

Final Thoughts

OpenSea isn’t just updating its look—it’s reimagining its role in the Web3 world. With support for multiple blockchains, better tools, and the upcoming SEA token, the platform is aiming to win back its top spot and make things more rewarding for users.

The SEA token may not have a launch date just yet, but when it arrives, it’ll likely be a major moment for OpenSea.