Federal Reserve Ends Specialized Crypto Oversight: Implications for Banks and Crypto Markets

The Federal Reserve is eliminating its specialized oversight of cryptocurrency within banking, merging these activities into standard supervisory processes. This move could ease interactions between banks and crypto firms, potentially boosting partnerships and reducing regulatory burdens. The decision, spearheaded by Vice Chairman Michael Barr, comes after a concerted effort to understand crypto-related risks and improve banking risk management practices.