The Federal Reserve has discontinued a supervisory program designed for monitoring U.S. banks involved in cryptocurrency services. This move signifies that banks will now be less scrutinized for activities like crypto custody or offering stablecoin services. The Fed stated that it has enhanced its understanding of the risks associated with crypto since initiating the program in 2023, and henceforth, these activities will be managed under the regular supervisory framework. This decision follows a regulatory shift under President Trump, who has fostered a more favorable environment for the crypto industry, marking a significant pivot from previous strict measures imposed on banks servicing cryptocurrency entities. The Fed had initially implemented these measures in response to risks highlighted by incidents such as the collapse of the FTX exchange and the failures of several crypto-friendly banks, including Signature Bank.

Source 🔗