The Federal Reserve has concluded its supervisory program that monitored U.S. banks involved in cryptocurrency services, as announced on August 15, 2025. The decision reflects the Fed's strengthened understanding of the associated risks since the program's initiation in 2023. Banks will no longer face enhanced scrutiny for providing crypto custody or stablecoin services; such activities will now undergo standard monitoring processes. This shift follows actions in April 2025 when similar supervisory limitations were lifted. The regulatory landscape has evolved under the Trump administration, pushing for a more lenient approach towards digital assets, contrasting with the more restrictive measures of the preceding administration. The Fed's earlier guidance aimed to mitigate risks stemming from banks' involvement with crypto, especially after significant market collapses, emphasizing the need for careful oversight of novel financial activities. The termination of the program is seen as a move toward standardizing regulatory practices for the banking sector in its dealings with digital assets.

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