The Federal Reserve has terminated a supervisory program that monitored U.S. banks offering cryptocurrency services. Initially put in place to oversee banks involved in activities like crypto custody and stablecoin services, the program was rescinded as the Fed stated it has gained sufficient understanding of the associated risks and bank management practices. This significant shift means that U.S. banks will no longer face increased scrutiny for offering cryptocurrency-related services, transitioning to standard supervision methods instead. The decision aligns with changes in the regulatory landscape under the Trump administration, which has adopted a more favorable approach toward the digital asset industry, reversing stricter policies from the previous administration. This move is part of broader regulatory changes, including President Trump's executive order prohibiting the debanking of crypto initiatives, aimed at alleviating constraints on the industry.

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