FED Officially Terminates Special Monitoring Plan for Crypto Activities in Banks – A Major Turning Point for Digital Finance.
Recently, the US Federal Reserve (FED) announced the termination of a special monitoring program for cryptocurrency (Crypto) and financial technology (Fintech) activities in the banking system. This decision is considered an important milestone, reflecting FED's deeper understanding of digital financial services operations and a better grasp of risk management methods.
Previously, this monitoring program was established to ensure banks did not face significant risks when testing or deploying Crypto-related services. However, based on a new assessment, FED believes that the current risk management system of banks is strong enough, and the Crypto industry has entered a more mature and transparent stage.
This means that many banks in the US will find it easier to expand digital asset custody, payment, and trading services for customers. Experts believe this is a positive signal that could stimulate new investment capital and drive innovation in the digital finance sector.
The political context also plays an important role in this decision. Since his re-election and return to the White House in late 2024, President Donald Trump has repeatedly declared support for the Crypto industry and opposed the so-called "Debanking campaign" – the trend of removing or restricting banking services for financial technology and cryptocurrency companies. The Trump administration has continuously pressured to remove unnecessary administrative barriers, and FED's move this time is seen as the most obvious achievement of that effort.
