Fed Eases Crypto Banking Rules, Ending Special Oversight Program

The Federal Reserve has scrapped its special supervision program for banks dealing with cryptocurrencies, marking a significant shift in regulatory posture. Launched in 2023 to monitor risks around novel fintech activities, the program will now be folded into standard oversight—a move crypto advocates hail as a victory against perceived banking restrictions.

Senator Cynthia Lummis framed the decision as a blow to 'Operation Chokepoint 2.0,' the controversial regulatory campaign allegedly limiting crypto firms' access to banking services. 'This is real progress toward a level playing field,' she noted, though emphasizing further reforms remain necessary.

The Fed's pivot reflects growing institutional comfort with digital assets after two years of scrutiny. By rescinding its 2023 supervisory letter, the central bank signals crypto-related banking activities will now be evaluated through traditional risk frameworks rather than specialized protocols.