The Federal Reserve has concluded a supervisory program that monitored U.S. banks involved in cryptocurrency services, effective August 15, 2025. This program required banks to inform the Fed and adhere to stringent guidelines related to crypto and fintech activities. The Fed claims to have strengthened its understanding of the risks linked to such activities and will now oversee these through standard supervisory processes rather than specialized guidelines. This shift follows the withdrawal of supervisory letters that limited banks' engagement in crypto services, marking a significant change in the regulatory landscape that has been shaped by the fallout from notable events, including the collapse of FTX and the failure of crypto-friendly banks. The announcement coincided with regulatory reforms under the Trump administration, aiming to offer a more accommodating dynamic towards the crypto industry, having previously been viewed as restrictive under prior governance. Overall, this transition reflects a recognition of the evolving nature and risks associated with cryptocurrency in the financial sector.

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