The Federal Reserve has announced the termination of its supervisory program aimed at monitoring U.S. banks engaged in crypto services. Initially implemented in 2023, this program enforced strict guidelines for banks involved in activities like crypto custody and stablecoin services. With the program's end, these activities will now be overseen under standard supervisory practices rather than heightened scrutiny. This decision reflects the Fed's enhanced understanding of the risks associated with such activities and follows a broader shift in regulatory posture under President Trump's administration, which is perceived as more favorable toward the crypto industry. The change also comes after the withdrawal of previous supervisory letters that restricted banks' engagement with crypto services. As the regulatory landscape evolves, the Fed's previous concerns over risks, highlighted during the aftermath of incidents like the FTX collapse, appear to be stabilizing, indicating a shift in how banks can interact with the growing blockchain sector.

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