The Federal Reserve has terminated a supervisory program that monitored banks involved in cryptocurrency services, stating it has gained sufficient understanding of the associated risks. Previously, banks offering crypto-related services like custody or stablecoins faced increased scrutiny. Now, such services will be regulated under standard supervisory processes. This announcement follows the Fed's withdrawal of two supervisory letters limiting banks’ capabilities in crypto services earlier in 2025. The preceding guidance aimed to mitigate risks associated with innovation in the crypto space post-FTX collapse. The Fed's action reflects a shift in regulatory approach as the U.S. grows more lenient under the Trump administration, reversing stricter policies from the Biden era, including a recent executive order preventing debanking of crypto companies. This decision is seen as a response to ongoing industry pressures and criticisms regarding excessive regulation limiting growth in the sector.

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