The Federal Reserve has announced the conclusion of a supervisory program that monitored U.S. banks engaged in cryptocurrency operations. This program, initiated in 2023, required banks to notify the Fed and comply with strict guidelines to ensure risk management when involved in crypto services like custody and stablecoin offerings. The Fed stated it has enhanced its understanding of these activities and will now monitor them through standard supervisory processes instead of a specialized program. This decision follows moves by the Fed to withdraw supervisory letters limiting banks' engagement in crypto services earlier this year. This shift comes amid a changing regulatory landscape under President Trump's administration, which has taken a more accommodating approach towards the crypto industry, contrasting the prior administration's strict stance. As the Fed rescinds the program, U.S. banks will face fewer constraints in offering crypto-related services, indicating a potential shift towards a more supportive regulatory environment for digital assets.

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