The Federal Reserve has concluded a supervisory program monitoring U.S. banks providing crypto services. Previously established in 2023, this program required banks involved in cryptocurrency and fintech to notify the Fed and adhere to strict guidelines. The Fed claims that it has since improved its understanding of these activities and their associated risks, now opting to monitor them through standard supervisory processes instead of a dedicated program with enhanced scrutiny. This decision follows a broader shift in regulatory attitudes under the Trump administration, which has recently favored the crypto sector. The Fed originally imposed these restrictions following tumultuous events in the crypto market, including the collapse of the FTX exchange and failures of banks like Signature Bank. In conjunction with this announcement, President Trump also signed an executive order aimed at prohibiting the debanking of crypto-related initiatives, marking a significant policy shift toward the industry.

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