US Federal Reserve ends its special supervision program on crypto activities

The entity has closed its Innovative activities supervision program, moving the surveillance of bank relations with cryptocurrencies to its usual supervision process. The measure reflects a change towards a more flexible posture in crypto regulation.

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• The FED dissolves its special crypto supervision program after two years of operations.
• The decision aligns its position with the Occ and the Fdic in more flexible rules.
• The measure arrives after appointments of more favorable officials to the crypto industry.

The United States Federal Reserve (Fed) announced on Friday the closure of his Innovative Activity Supervision Programa scheme created two years ago to monitor the relationships between banks and the cryptocurrency sector. The responsibility of supervising these activities will now go to the regular control processes that the institution applies to all banking operations.

Fed closes a program that supervised crypto entities

This program was implemented during the management of Michael Barr as vice president of supervision, appointed by then President Joe Biden. The objective was to gather specialized experience and evaluate emerging risks derived from innovative and not tested technologies, particularly after the banking crisis of 2023, when three US entities with strong exposure to technology and crypto clients –Silicon Valley Bank, Silvergate Bank and Signature Bank– They collapsed in a period of five months, review COINDESK.

In its statement, the Fed He explained that, since the creation of the program, he has strengthened his understanding of activities related to cryptocurrencies, their risks and management practices used by banks. Therefore, he considered that special surveillance is no longer necessary and that monitoring can be integrated into the usual supervision.

The change comes in a political and regulatory context different from that of two years ago. Since the beginning of Donald Trump’s second term, the Federal Reserve He has acted more aligned with other banking agencies that have relaxed his position on cryptoactive. In April, the Fed He withdrew his previous guide that forced banks to request authorization before starting new operations with cryptocurrencies.

The Office of the Comptroller of La Moneda (OCC) and the Federal Deposit Insurance Corporation (FDIC) They adopted similar measures, allowing financial institutions to decide independently how to participate in the crypto sector, provided they meet the risks management standards already established.

Opening signal for the crypto sector?

The dismantling of the program is interpreted by the crypto industry as an opening signal. For years, companies in the sector and republican legislators denounced the existence of an alleged government campaign to restrict the access of crypto signatures to banking services, which they baptized as they baptized as “Operation Chokepoint 2.0”.

The new direction of the agencies, promoted by appointments related to the sector carried out by Trump, has reduced these tensions. Although the Federal Reserve maintains its institutional independence, in this case it has followed the tendency of the Occ and the Fic, consolidating a more flexible posture towards cryptocurrencies within the US banking system.

Finally, the announcement occurs in the midst of the differences between the director of the Fed, Jerome Powell, and President Trump, precisely at the rate of the current state of interest rates. The American president insists on the need to lower said indicator to support the local economy, but the person responsible for the Federal Reserve He insists that the measures remain given the financial uncertainty product of tariff policies.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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