The Federal Reserve has terminated its supervisory program designed to monitor U.S. banks involved in cryptocurrency services. This decision, announced on August 15, 2025, means that banks will no longer be subjected to heightened scrutiny for offering crypto custody and stablecoin services. Initially implemented in 2023, the program required banks engaging with crypto to adhere to strict guidelines due to the associated risks. The Fed stated that it has gained sufficient understanding of these activities and will now monitor them through standard supervisory processes. This move follows earlier actions in April that retracted two letters limiting banks' crypto activities. The backdrop for these regulatory changes includes a shifting landscape under the Trump administration, which has shown more support for the crypto sector compared to the previous administration. Trump's recent executive order aims to prevent debanking practices against crypto initiatives, further indicating a pivot towards a more accommodating regulatory environment for digital assets and related banking services.

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