The Federal Reserve has concluded a supervisory program that monitored U.S. banks involved in crypto activities, announcing that banks will no longer face heightened oversight. This decision reflects the Fed's strengthened understanding of crypto-related risks following past scrutiny of banks offering services like crypto custody and stablecoin management. The program, initiated to enforce stricter guidelines in response to activities perceived as risky, was part of a broader regulatory landscape shift amid a changing political environment. After various challenges in the crypto sector and the collapse of notable firms like FTX, the Fed previously imposed stringent monitoring criteria on banks with significant exposure to digital assets. This latest move signals a pivot towards integrating crypto services into standard supervisory practices rather than maintaining separate, stricter oversight for such operations. The announcement coincides with a regulatory stance that is more favorable to the crypto industry under President Trump, who has embraced digital assets through various initiatives.

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