Fed to End Program That Stepped Up Bank-Crypto Scrutiny

The Federal Reserve announced it will discontinue a Biden-era program aimed at increasing regulatory oversight of banks' engagement with the cryptocurrency industry. This move comes as US regulators have recently demonstrated a more welcoming stance towards the crypto sector. The initiative, launched in 2022, required banks to seek the Fed's approval before engaging in any new crypto-related activities. This was part of a broader effort by the Biden administration to bring greater regulatory clarity and control to the rapidly evolving crypto landscape. However, the Fed's decision to wind down the program suggests a shift in the regulatory approach, potentially signaling a more collaborative relationship between traditional finance and the crypto industry. This decision aligns with recent moves by other US regulators, such as the SEC, to embrace certain aspects of the crypto ecosystem. The discontinuation of the Fed's crypto oversight program is seen as a positive development for the crypto industry, as it may pave the way for increased integration and collaboration between banks and digital asset providers.