Federal Reserve Concludes Oversight Initiative on Banks’ Cryptocurrency Engagements

The U.S. Federal Reserve has terminated its supervisory program that monitored banks’ activities in the cryptocurrency sector. This initiative was established to ensure banks were effectively managing risks associated with crypto assets. However, the Federal Reserve determined the program was no longer necessary, citing recent developments in the cryptocurrency market and increased regulatory clarity. The Fed will continue to observe banks’ cryptocurrency activities, but will now rely on standard supervisory methods. Analysts predict this decision may incentivize banks to become more involved in the cryptocurrency market.