US Federal Reserve Ends Special Cryptocurrency Supervision Program Following Trump Administration's Regulatory Relaxation

On August 15, the Federal Reserve Board (FRB) announced the termination of its special program for supervising cryptocurrency and fintech-related operations. Insights from this program will be integrated into the regular supervision process, and the supervisory letters drafted in 2023 will be withdrawn. In August 2023, the FRB initiated the 'New Activities Supervision Program,' targeting cryptocurrencies, distributed ledger technology (DLT), and complex technology-driven partnerships with non-banks. The scope of supervision included cryptocurrency custody, cryptocurrency-backed lending, and the issuance and distribution of stablecoins. Since the program's inception, the FRB has been monitoring these activities, associated risks, and banking regulations...