The Federal Reserve has officially terminated a supervisory program that monitored U.S. banks involved in cryptocurrency services. Previously, banks had to adhere to stringent guidelines and notify the Fed when engaging in activities related to cryptocurrencies, including custody and stablecoin services. In a statement, the Fed indicated that its understanding of these activities and their associated risks had improved, permitting banks to be supervised under standard processes instead of the specialized program. This change follows the Fed's earlier decisions to retract supervisory letters that had constrained banks from offering crypto services. The program's dissolution occurs against a backdrop of evolving regulatory attitudes under the Trump administration, which has introduced a more accommodating stance toward the digital asset sector. President Trump also signed an executive order aimed at preventing the debanking of crypto-related initiatives. This shift in oversight comes as U.S. regulators had grown wary of the crypto industry's risks, heightened by past incidents such as the FTX collapse and failures of several crypto-friendly banks in 2023.

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