The Federal Reserve has concluded its supervisory program that monitored banks engaged in cryptocurrency services, effective August 2025. This decision allows U.S. banks to offer crypto custody and stablecoin services without facing heightened scrutiny. The Fed stated that it has improved its understanding of the associated risks since initiating the program in 2023, and will now involve such activities within a standard supervisory framework. Previously, banks had to inform the Fed of their crypto operations and adhere to stringent guidelines. This change comes in the wake of a shifting regulatory attitude towards the crypto industry under the Trump administration, aligning with broader moves to facilitate banks' involvement in digital assets. The Fed's withdrawal of specific supervisory letters also indicates a relaxed stance on banks’ capabilities related to crypto, marking a significant shift in U.S. regulatory policy toward the digital assets sector. The decision was partly influenced by rising concerns following notable failures in the crypto market, including the collapse of exchanges like FTX and the downfall of banks like Signature Bank. The evolving regulatory landscape reflects a changing perception of cryptocurrencies within traditional finance.

Source 🔗