The Federal Reserve has ended a supervisory program that monitored U.S. banks offering crypto services, stating it has developed a better understanding of associated risks and bank practices. Previously, the Fed mandated that banks engaged in crypto activities notify it and adhere to strict guidelines. This new move allows such activities, including crypto custody and stablecoin services, to be monitored through standard supervisory processes rather than a specialized program with heightened scrutiny. The decision aligns with a broader regulatory shift following key events, including the collapse of the FTX exchange and the failure of several banks in 2023. Under previous administrations, regulatory policies towards the crypto industry became increasingly stringent, leading to allegations of coordinated efforts to restrict banking services for digital asset firms. The announcement follows a more favorable regulatory stance under recent leadership, signaling a potential shift in the U.S. government's approach to the crypto sector.

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