The Federal Reserve has discontinued its supervisory program monitoring U.S. banks that offer cryptocurrency services. Initially, in 2023, the Fed mandated that banks engaged in crypto-related activities notify it and adhere to specific guidelines due to perceived risks. The program included enhanced scrutiny of banks offering services like crypto custody and stablecoins, as part of efforts to mitigate innovation-related risks. However, the Fed announced that these banking activities would now fall under standard supervisory processes rather than the specialized program. This decision follows prior changes in regulatory stance, influenced by the collapse of entities like FTX and small banks in 2023, leading to greater scrutiny of the relationship between traditional finance and the crypto sector. Following the election of Donald Trump, regulatory approaches have reportedly softened, with new policies aimed at facilitating the growth of the crypto industry, moving away from previous restrictions. Moreover, Trump signed an executive order prohibiting the debanking of cryptocurrency initiatives to bolster support for the sector.

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