Fed to End Program That Stepped Up Bank-Crypto Scrutiny

The Federal Reserve said it will wind down a Biden-era initiative that was designed to step up scrutiny of lenders’ involvement in digital assets, building on recent moves from US regulators to embrace the crypto industry.

“Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices,” the Fed said in a statement on Friday. “As a result, the Board is integrating that knowledge and the supervision of those activities back into the standard supervisory process and is rescinding its 2023 supervisory letter creating the program.”