The Federal Reserve has ceased its supervisory program aimed at monitoring banks involved in cryptocurrency services. This program required banks to notify the Fed and adhere to strict guidelines when engaging in activities like crypto custody or stablecoin services. The Federal Reserve stated that its understanding of crypto-related risks and bank risk management practices has improved, allowing it to lift the specialized scrutiny. Going forward, these activities will be overseen through standard supervisory processes rather than the previous, more stringent program. This change follows a broader shift under recent regulatory actions, especially after the changes in U.S. administration, which are seen as moving towards a more accommodating stance for the digital asset industry. The end of this supervisory program aligns with the Fed's confidence in its ongoing regulatory framework for managing the complexities introduced by financial innovations in cryptocurrencies.

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