- The Federal Reserve (Fed) ends its cryptocurrency and fintech oversight program launched in 2023.
- Crypto-related banking activities will now be integrated into the standard regulatory process of the Fed.
- This move reflects a shift towards a softer approach to digital assets under the Trump administration.
- Changes follow SEC’s cessation of several investigations against crypto companies and discussions on a national crypto reserve.
- Personnel changes at the Fed include the resignation of Board member Adriana Kugler, with Stephen Miran stepping in temporarily.
The End of Fed’s Crypto Oversight Program
The Federal Reserve System (Fed) has announced the conclusion of its program monitoring bank operations related to cryptocurrencies and fintech. Launched in August 2023, this initiative aimed to evaluate risks associated with banks handling deposits, payments, and loans for companies in the digital asset sector. In a recent statement, the Fed declared that insights gained from this program would be integrated into its standard banking supervision processes. The separate directive establishing this oversight system has been rescinded.
A Shift Towards Softer Regulation
This decision does not necessarily signify easing requirements but reflects a political shift in the U.S., according to analysts. The Trump administration is demonstrating a more lenient stance on digital asset regulation. Since January 2025, the Securities and Exchange Commission (SEC) has halted several investigations against cryptocurrency companies, while the Treasury is exploring options for creating a national cryptocurrency reserve.
Personnel Changes at the Federal Reserve
Significant personnel changes are occurring within the Fed as well. Board member Adriana Kugler resigned on August 8th, with Stephen Miran, head of the Council of Economic Advisers, appointed as her temporary successor until a permanent candidate is selected in January. Experts suggest this move aligns with President Trump’s administration’s desire to strengthen its influence over this structure.
Political Sensitivity Surrounding Fed Leadership
Analysts emphasized that leadership at the Fed has long been politically sensitive. President Trump continues to publicly criticize Chairman Jerome Powell, whose term expires in May 2026, urging him to reduce key interest rates. It is noteworthy that Republican ally Anna Paulina Luna approached the U.S. Department of Justice demanding criminal charges against Powell.
The transition reflects broader implications for digital asset regulations and illustrates ongoing political dynamics influencing financial regulation policies.
