The Federal Reserve has announced the termination of a supervisory program that monitored U.S. banks engaged in crypto activities, indicating a progression in its understanding of risks related to cryptocurrency. The program, established in 2023, required banks involved in cryptocurrency services to adhere to strict guidelines. The recent decision allows banks to provide services like crypto custody and stablecoin offerings under the normal supervisory process instead of stringent oversight. This change reflects a shift in the regulatory landscape following the appointment of new leadership under President Donald Trump, which has fostered a more accommodating environment for the digital asset sector. The Fed's move comes after previous guidelines aimed at minimizing risks associated with innovative financial activities, showcasing a notable shift in regulatory attitudes towards the crypto industry. The regulatory scrutiny of banks offering services related to cryptocurrencies is set to be reduced significantly as the financial sector adapts to evolving practices and technologies in this space.

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