The Federal Reserve has terminated its supervisory program that monitored U.S. banks offering cryptocurrency services, announcing the change in a statement. Previously, banks involved in cryptocurrency and fintech activities were required to follow strict guidelines and notify the Fed about their operations. The Fed has stated that it has gained a stronger understanding of the risks associated with these activities, and henceforth, they will be monitored under standard supervisory processes rather than specialized ones. This decision follows a trend of regulatory easing under the Trump administration, as recent policies have become more favorable towards digital assets. The Fed previously had heightened scrutiny on banks involved in stablecoin services and crypto custody, especially following concerns about the risks of such innovations, highlighted by incidents in the crypto market like the FTX collapse.

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