The Federal Reserve has concluded its supervisory program for U.S. banks offering crypto services, stating it now understands the associated risks. Previously, banks involved in crypto needed to notify the Fed and comply with specific guidelines. The end of this program means that activities such as crypto custody and stablecoin services will be monitored through standard supervisory processes rather than specialized scrutiny. This move aligns with a shift in the regulatory landscape under the Trump administration, which has adopted a more favorable stance towards the digital asset industry. The decision follows the Fed's withdrawal of earlier supervisory letters that restricted banks' involvement in crypto services. Despite past concerns over risks related to crypto, including incidents like the collapse of FTX, the Fed's latest announcement indicates a significant regulatory easing for U.S. banks engaged with cryptocurrencies.

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