The Federal Reserve has concluded a supervisory program that monitored U.S. banks involved in cryptocurrency services. This program, established in 2023, required banks engaged in fintech and crypto activities to adhere to strict guidelines. The Fed indicated that it has gained sufficient understanding of the risks associated with these activities, leading to the decision to rescind the specialized monitoring program. Moving forward, banks participating in novel activities such as crypto asset custody and stablecoin services will now be subject to standard supervisory processes rather than enhanced, stringent scrutiny. This shift follows a broader regulatory change under the Trump administration, which has adopted a more favorable stance toward the digital asset industry. Trump's administration also issued an executive order to prevent the debanking of crypto initiatives. The end of this supervisory program signals significant changes in the regulatory landscape, enabling banks to offer crypto services with potentially less oversight. U.S. regulators have previously expressed caution towards the crypto sector after high-profile collapses and failures within the industry in recent years.

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