The Federal Reserve has ended its supervisory program that monitored U.S. banks involved in cryptocurrency services. Initially established to enforce strict guidelines on banks offering crypto custody and stablecoin services, the Fed stated it has gained a sufficient understanding of the related risks. The transition means that such activities will now be monitored through standard supervisory processes rather than under a specialized and stricter program. This decision follows a broader regulatory shift under the Trump administration, which has adopted a more favorable stance on the digital asset industry, including actions to prevent the debanking of crypto firms. The move marks a significant change after years of regulatory caution following several high-profile failures in the crypto sector, such as the collapse of the FTX exchange and problems with banks like Signature Bank. The rescinding of this program indicates a regulatory environment that may support increased involvement of traditional banks in the crypto market while addressing associated risks.

Source 🔗