The Federal Reserve has concluded its supervisory program that oversaw U.S. banks involved in cryptocurrency services. This change means banks will no longer face stricter scrutiny for offering crypto custody or stablecoin services. The decision reflects the Fed's increased understanding of the associated risks since initiating the program in 2023. Previously, banks dealing in crypto were required to inform the Fed and adhere to a specific set of guidelines. The supervisory program was established in response to the growing concerns surrounding the crypto market, particularly after events like the FTX collapse. Moving forward, such crypto activities will be monitored under standard supervisory processes rather than enhanced controls. This development aligns with the recent regulatory adjustments under the Trump administration, which have sought to create a more supportive environment for the crypto industry. Critics of past U.S. banking policies, likened to 'Operation Choke Point,' had claimed these regulations restricted banking services for crypto firms. Trump’s recent executive order aims to prevent the 'debanking' of the crypto sector, highlighting a shift toward more favorable regulations for digital asset businesses.

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