The Fed has ended its special oversight program for cryptocurrency and fintech activities, reverting to standard bank supervisory processes. This move aligns with the FDIC and OCC, removing the “reputational risk” standard that was criticized for hindering banks from serving crypto businesses. The Fed and other agencies also issued guidance on digital asset custody, emphasizing exclusive control over private keys. Chair Jerome Powell stated that the Fed will not restrict lawful relationships between banks and crypto firms, signaling a normalization of oversight as regulators gain a better understanding of digital asset risks.