The Federal Reserve has officially ended a supervisory program designed to monitor U.S. banks involved in cryptocurrency services. This decision follows a period where banks were required to follow strict guidelines if they engaged with crypto activities. The Fed stated that with their enhanced understanding of crypto-related risks, these activities will now be overseen through the standard supervisory process. This shift means that banks will face reduced scrutiny while providing services such as crypto custody and stablecoin offerings. The announcement coincides with a broader regulatory shift in the U.S. under President Donald Trump, who has taken steps to support the crypto industry following a more restrictive period under previous administrations. The decision is in line with the regulatory landscape's changes, particularly after concerns related to events like the collapse of the FTX exchange and challenges faced by cryptocurrency-friendly banks. Industry leaders have long argued that U.S. regulatory policies have systematically hindered the growth of crypto companies. This move signals a potential easing of regulatory barriers that might foster the growth of the crypto sector in the U.S.

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