The Federal Reserve has discontinued a supervisory program that monitored U.S. banks involved in crypto services. The decision was announced as the central bank assessed its understanding of associated risks. Banks will no longer face heightened scrutiny when offering crypto-related services, such as custody or stablecoin options, as they will be governed by standard supervisory processes instead of stricter guidelines. This decision follows previous moves by the Fed to limit banks' crypto activities after incidents like the FTX collapse and the failures of several banks in 2023. Under the program initiated in 2023, banks offering crypto services faced unique monitoring and oversight. The termination of this program aligns with a broader shift in the regulatory environment, particularly under the Trump administration, which has adopted a more favorable stance towards the crypto industry, including actions that prevent the debanking of crypto businesses.

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