The Federal Reserve has officially concluded its supervisory program for U.S. banks involved in cryptocurrency activities. Initially established in 2023, the program required banks to report and comply with rigorous guidelines related to crypto and fintech activities. The Fed stated its decision is based on improved understanding of the associated risks and bank management practices since the program's inception. Activities such as crypto asset custody and offering of stablecoins will now fall under the standard supervisory process rather than a specialized oversight regime. This shift follows the Fed's withdrawal of previous supervisory letters that limited banks' ability to engage in crypto services. The backdrop of this regulatory change includes a broader shift under President Trump's administration, which is perceived to favor the crypto industry compared to prior years. Trump's recent executive order aims to prevent the debanking of crypto initiatives, signaling a more supportive approach towards digital assets moving forward.

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