According to the latest news from the financial sector, the Federal Reserve System (Fed) has announced a significant policy adjustment. The Fed has decided to terminate the previous "new activity" regulatory program specifically aimed at the banking sector's encryption and fintech activities, and instead integrate the regulation of these emerging areas into the regular banking regulatory framework.

This decision marks a significant shift in the Fed's regulatory approach to the field of financial innovation. The special regulatory program initiated by the Fed last year was originally intended to closely monitor the interaction between banks and these emerging technologies. However, the Fed now believes that, with a deeper understanding of these emerging risks and banks' risk management capabilities, a separate regulatory program is no longer necessary.

This move reflects that regulatory agencies' attitudes towards the financial technology and encryption industry are evolving. By incorporating these emerging fields into the regular regulatory framework, the Fed seems to be seeking a balance between encouraging innovation and maintaining financial stability.

For the banking industry, this change may mean facing a more uniform and predictable regulatory environment when venturing into the fields of encryption and financial technology. However, it may also require banks to adopt more cautious and comprehensive risk management strategies in these emerging businesses.

As financial technology and encryption continue to change traditional banking business models, how regulators respond to these changes will remain a key focus of attention in the financial sector. The Fed's policy adjustment will undoubtedly have a profound impact on the entire industry, and its specific implementation effects are worth further observation.