The Federal Reserve has concluded a supervisory program designed to monitor U.S. banks engaged in cryptocurrency services. This decision reflects the Fed's enhanced understanding of the risks associated with crypto activities. Previously, banks offering services like crypto custody or stablecoin operations were monitored under stricter guidelines. However, the Fed has now opted to integrate these activities into the general supervisory process. The shift follows a period of heightened scrutiny after significant events in the crypto sector, including the collapse of the FTX exchange in 2022 and issues faced by several small banks in 2023. This new approach signals a more lenient regulatory stance as the U.S. government transitions under different leadership. Overall, the Fed's change suggests a move towards a more normalized regulatory environment for banks participating in the digital asset sector.

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