The Federal Reserve has announced the end of its special oversight program for cryptocurrencies and new technologies, returning banks to normal regulatory practices.
Federal Reserve's Financial Policy
The Federal Reserve of the United States has announced the conclusion of its special supervision program, which was initiated in 2023 to study the risks associated with emerging financial technologies, including cryptocurrencies. The Fed will now oversee these activities under standard bank supervision.
Reactions from Crypto Supporters
Senator Cynthia Lummis reacted to the Fed's decision, calling it a significant victory against 'Operation Chokepoint 2.0,' a program that limited crypto firms' access to banking services. She stated, 'There’s still more to do, but this is real progress toward a level playing field for crypto.' > 'Big win for putting an end to Operation Chokepoint 2.0. The Fed announced it’s killing the targeted supervision of digital asset banking activities. There’s still more to do, but this is real progress toward a level playing field for crypto.' CITE_W_A
Broader Shift in Crypto Regulation
The changes in crypto regulation are part of a broader policy initiated by the Federal Reserve and other regulators under the Trump administration. In April, the Fed and other U.S. banking regulators ceased the previous guidance on cryptocurrencies, and in June, removed 'reputational risk' from bank oversight, which the crypto industry argued was used to unfairly target and shut out crypto firms. These moves indicate the U.S. is clearly embracing cryptocurrencies.
The Federal Reserve's easing of regulations and changes in crypto asset oversight signal a more friendly policy towards digital assets in the U.S., which may impact the future of the crypto industry.
