The Federal Reserve has terminated a supervisory program that monitored U.S. banks offering cryptocurrency services. Previously, banks involved in crypto custody and stablecoin services faced heightened scrutiny since 2023. The Fed stated that its oversight program has improved its understanding of these activities and associated risks, allowing it to shift to a standard supervisory process. This change follows a trend of regulators becoming more accepting of the crypto industry, especially after the collapses of major crypto entities and banks linked to the sector in 2022 and 2023. U.S. regulators perceived risks from the crypto sector, leading to increased scrutiny. In April 2025, similar supervisory letters limiting banks' crypto services were rescinded. Since President Trump's administration began, there has been a legislative push to reduce restrictions on the crypto industry, including an executive order that prevents the debanking of crypto initiatives. The Fed expects that the broader administrative changes will reshape how banks engage with digital assets moving forward.

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