The U.S. Federal Reserve has confirmed it will dismantle a dedicated oversight program that targeted cryptocurrency-related banking activities, marking a significant policy reversal for the financial sector.
The move comes shortly after President Donald Trump signed an executive order instructing regulators to halt discriminatory banking practices.
The specialized monitoring framework, introduced in 2023, was designed to scrutinize “novel activities” such as digital asset services within regulated banks.
Over time, the central bank says it has gathered enough insight into the risks, operational models, and risk management measures surrounding these services to incorporate them into its standard supervisory process. As part of the shift, the original guidance establishing the program will be formally withdrawn.
Critics had long associated the initiative with elements of the so-called Operation Chokepoint, in which financial regulators allegedly pressured banks to sever relationships with politically disfavored sectors — including crypto firms — during the Biden administration.
Trump’s recent executive order explicitly called out such practices, requiring agencies to remove any policies or directives used to target companies or individuals for political, religious, or ideological reasons.
This is not the first time the Fed has eased restrictions on crypto banking in recent months. In July, the central bank and other U.S. financial watchdogs clarified that banks can hold cryptocurrency in custody under the same rules that govern other asset classes.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/federal-reserve-drops-special-crypto-banking-oversight-after-trump-directive/