The Federal Reserve has concluded its supervisory program focused on U.S. banks engaging in cryptocurrency services, stating it has enhanced its understanding of associated risks and bank management practices. This decision means that banks will no longer face heightened scrutiny for offering services like crypto custody or stablecoin facilitation, transitioning to standard supervisory measures. The program, initiated in 2023, imposed strict guidelines on banks involved in cryptocurrencies in response to risks highlighted by events such as the collapse of FTX and the failures of several banks in 2023. The end of this program aligns with a regulatory shift under the Trump administration, which has seen a more flexible approach toward digital assets, reflected in the Federal Reserve's recent policies. U.S. regulators are moving away from the tight restrictions previously imposed, facilitating broader participation of banks in the crypto sector without additional oversight.

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