The Federal Reserve announced the end of its supervisory program which was focused on monitoring U.S. banks that offer crypto services. Initially established in 2023, this program required banks engaging with cryptocurrencies to notify the Federal Reserve and adhere to strict guidelines. The Fed now claims to have gained sufficient understanding of the risks associated with cryptocurrencies and their management practices. As a result, it will manage activities related to crypto asset custody and other services within the standard supervisory framework, rather than through a specialized program with rigorous oversight. This shift indicates a significant evolution in the Fed’s approach towards cryptocurrency regulation.

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