The Federal Reserve announced that it is easing its oversight of banks' interactions with crypto. Previously, it maintained a program to monitor these activities, which is now being ended.
This action reflects an executive order signed by President Trump last week, which sought to reduce unfair practices of crypto de-banking. This seems to be a positive development for the sector.
New crypto guidelines from the Federal Reserve
The Federal Reserve has faced criticism from much of the crypto industry in recent months, with its chairman Jerome Powell firmly refusing to lower interest rates. This has generated a wave of criticism led by President Trump, but not everything is negative. Today, the Fed announced that it was easing its own crypto regulations:
"The Federal Reserve Board announced on Friday that it will end its program for supervising innovative activities and will return to monitoring the innovative activities of banks through the normal supervisory process. Since the Board initiated its program to oversee certain crypto and fintech activities in banks, the Board has strengthened its understanding of these activities," it stated.
As the Fed claims to have increased its understanding of crypto, it will end this program. This reflects recent developments in Trump's campaign against the enforcement of crypto regulations, as several executive orders sought to reduce unfair practices of de-banking.
By refusing to monitor banks' interactions with crypto, the Federal Reserve's decision is very aligned with these orders. It is unclear how this new situation will unfold in the markets, but it seems highly positive.
The Federal Reserve article eases monitoring of crypto over banks was first seen on BeInCrypto Brazil.