The Federal Reserve has concluded a supervisory program that monitored U.S. banks engaged in cryptocurrency activities. Previously, banks involved in crypto custody or stablecoin services were subjected to stricter regulations and closer scrutiny. The Fed's announcement indicates that, following an enhanced understanding of associated risks, these activities will now fall under standard supervisory processes instead of specialized programs. The move aligns with a shift in the regulatory environment under the current administration, led by President Donald Trump, who has enacted policies favoring the digital asset industry. This includes rescinding previous supervisory letters that restricted banks' crypto engagement. The Fed's decision also comes after increased scrutiny of the crypto sector following incidents such as the collapse of the FTX exchange and the failures of some crypto-friendly banks. Additionally, concerns over 'Operation Choke Point 2.0'—which allegedly sought to limit banking services for crypto companies—have been highlighted by industry leaders. The regulatory landscape is shifting towards a more open approach to cryptocurrencies, mirroring broader changes in the financial sector.

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