Fed Shuts Down Crypto Oversight Program as Trump Administration Loosens Rules
Fed ends crypto oversight program as Trump’s softer stance reshapes U.S. digital asset regulation.
The U.S. Federal Reserve has announced it will dismantle its special oversight program for crypto and fintech activities within banks, marking a significant regulatory shift under the Trump administration. Introduced in August 2023, the program was designed to evaluate risks tied to deposits, payments, and loans involving digital asset firms. With its termination, these responsibilities will now be folded into the Fed’s standard supervisory process.
In its official notice, the central bank explained that the knowledge gathered during the program’s two years of operation will inform routine bank supervision going forward. The separate directive that created the oversight framework has been formally repealed.
Analysts stress that this change should not be mistaken for a complete rollback of regulatory standards. Instead, it reflects a broader reorientation of U.S. financial policy under the Trump administration, which has consistently taken a more lenient stance toward digital assets. “The decision is less about weakening safeguards and more about embedding them into existing supervisory practices,” one analyst said.
The move comes amid a series of related policy changes. Since January 2025, the Securities and Exchange Commission has dropped several high-profile probes into cryptocurrency companies, signaling a sharp pivot from the more aggressive enforcement approach seen under the Biden administration. At the same time, the Treasury Department is actively exploring the creation of a national cryptocurrency reserve — a controversial initiative that would represent a dramatic evolution in how the U.S. government interacts with digital assets.
Leadership dynamics within the Fed are also in flux. Adriana Kugler, a member of the Board of Governors, resigned on August 8. She has been temporarily replaced by Stephen Miran, head of the Council of Economic Advisers, until a permanent successor is appointed in January 2026. Market watchers view this interim appointment as an attempt by the Trump administration to assert greater influence over the central bank’s direction.
The question of Federal Reserve leadership remains politically charged. President Trump has repeatedly criticized Chair Jerome Powell, urging him to cut interest rates ahead of Powell’s term expiration in May 2026. The administration’s renewed focus on digital assets, combined with its push for looser monetary policy, underscores an effort to align the Fed more closely with Trump’s economic priorities.
For the banking sector, the end of the specialized oversight program may streamline compliance obligations but leaves open questions about how effectively emerging risks will be tracked. Some critics warn that removing a dedicated program could dilute focus at a time when crypto-related financial products are becoming increasingly integrated into mainstream banking.
Still, industry players welcome the move as a sign of regulatory normalization. By shifting crypto oversight into routine processes, the Fed signals that digital assets are no longer an exceptional category but part of the financial system’s evolving fabric.
