The U.S. Federal Reserve has discontinued its supervisory program that monitored banks involved in cryptocurrency services. Previously, banks offering services such as crypto custody and stablecoin operations were subjected to heightened scrutiny. The central bank has stated that it has now developed a stronger understanding of the associated risks and will monitor these activities through its standard supervisory processes instead of a specialized program. This change follows previous measures instituted in 2023, which included a requirement for banks to inform the Fed before engaging in crypto-related operations. The Fed's decision reflects a broader shift in the regulatory landscape, especially after changes in leadership and policy directions under President Trump, who has signaled a more favorable stance toward the crypto sector. The move aims to balance oversight while allowing banks more operational freedom regarding digital assets, especially in light of past disruptions in the industry. This decision may alleviate the concerns expressed by the crypto industry regarding restrictive regulatory practices and foster a more collaborative environment for innovation.

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