The Federal Reserve has concluded its supervisory program monitoring U.S. banks involved in cryptocurrency services. This decision indicates a shift in the regulatory landscape under the Trump administration, as banks will now be subject to standard supervisory processes rather than heightened scrutiny. The program initially launched in 2023 required banks to inform the Fed and comply with strict guidelines when offering services like crypto custody and stablecoin operations. The Fed stated that it has gained sufficient understanding of the risks associated with these activities to end the specialized program. This change follows previous efforts by the Fed to tighten regulations on banks linked to the crypto industry, particularly after events like the collapse of the FTX exchange in 2022 and the failure of crypto-friendly banks in 2023. The Federal Reserve's announcement comes amid a broader effort by the Trump administration to establish a friendlier regulatory approach to the digital asset industry, countering previous administrations' restrictive policies.

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