Crypto Gets Relief as Fed Ends Extra Oversight and Eases Banking Rules; Experts React

The Federal Reserve has discontinued its special supervision program for novel financial activities, including cryptocurrency services offered by banks. Launched in 2023, the initiative aimed to assess risks associated with emerging technologies. The Fed now believes it has gathered sufficient insights and will reintegrate oversight into its standard supervisory framework.

Senator Cynthia Lummis hailed the decision as a victory against 'Operation Chokepoint 2.0'—a term critics use to describe regulatory efforts limiting crypto firms' banking access. 'This marks real progress toward fair treatment for digital assets,' Lummis stated, though she emphasized further work remains. The move signals a potential thaw in the Fed's stance on crypto, aligning with broader industry calls for balanced regulation.