The U.S. Federal Reserve has abandoned prior reporting requirements on bank cryptocurrency activities, paving the way for a new era of risk management by financial institutions themselves. Letter SR 25-4 replaces two key directives from 2022 and 2023, effectively removing notification obligations to the Fed for banks’ involvement in crypto initiatives. This strategic shift signifies a departure from centralized supervision, replacing it with internal risk management practices that prioritize bank autonomy. The new framework emphasizes self-assessment by banks regarding operational, legal, liquidity, and reputational risks specific to cryptocurrency technologies.