15.08.2025 17:23

The Federal Reserve has terminated a program specifically targeting crypto banking, marking a significant shift in its regulatory approach. This decision follows directly from an executive order signed by Donald Trump aimed at dismantling discriminatory banking practices.

The central bank's press release detailed the phasing out of its specialized crypto and fintech supervision program. Instead, oversight of these activities will revert to the standard supervisory framework, reflecting the increased understanding of associated risks and bank mitigation strategies developed during the program's lifespan. This integration of acquired knowledge will streamline the regulatory process, eliminating the need for a dedicated program.

Crucially, the 2023 supervisory letter establishing the program will be revoked. The program is widely considered a key mechanism for enforcing "Operation Chokepoint," an initiative linked to the Biden administration. This action is a direct response to Trump's executive order, which condemned discriminatory banking practices based on factors such as political affiliation or religious beliefs and specifically cited Operation Chokepoint's coercive tactics against crypto firms. The executive order explicitly instructed regulators to cease any guidance facilitating these targeted actions.

This recent development builds upon prior Federal Reserve pronouncements regarding crypto banking. Last month, a joint statement from the Federal Reserve and other banking regulators clarified that banks are permitted to hold crypto assets, subject to existing regulations governing the custody of other assets.