The Federal Reserve has terminated its supervisory program that monitored U.S. banks involved in cryptocurrency services. Initially established in 2023, the program required banks to notify the Fed and adhere to strict guidelines when engaging in activities like crypto custody and stablecoin services. The Fed noted that it has gained a better understanding of the associated risks and now plans to monitor such activities through the standard supervisory process. This shift follows previous efforts to regulate banks' engagements with crypto and fintech, particularly after the failures of some banks and the collapse of the FTX exchange. The recent decision aligns with a broader regulatory shift under the Trump administration, which is more supportive of the crypto industry. Trump has signed an executive order aimed at preventing the debanking of crypto-related initiatives, marking a significant change in the regulatory landscape for digital assets in the U.S.

Source 🔗