The Federal Reserve has discontinued its supervisory program that monitored U.S. banks offering crypto services. Initially established in 2023, the program required banks involved in cryptocurrencies to inform the Fed and adhere to strict guidelines. The Fed stated that since the launch of this program, it has enhanced its understanding of the associated risks and management practices involved in these activities. Consequently, banks will now be monitored via the regular supervisory process rather than under specialized guidelines. This shift follows the withdrawal of two supervisory letters in April 2025, which previously limited bank operations in the crypto space. Enhanced scrutiny was initially introduced due to concerns following the FTX collapse in 2022 and failures of several banks linked to the crypto industry. Notably, the change coincides with a broader regulatory shift under the Trump administration, which has seen a more favorable approach to cryptocurrency regulation, including an executive order prohibiting the debanking of crypto initiatives.

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