The Federal Reserve has significantly altered its regulatory approach towards cryptocurrency by ending its Novel Activities Supervision Program. This program, which began in 2023, aimed to monitor crypto-related activities within banks and transition oversight into standard processes. The change represents a major step toward easing restrictions on banks’ involvement in the digital currency market. The move aligns with broader regulatory adjustments seen throughout 2025, including the April 2025 rollback of prior approvals for cryptocurrency services. This decision empowers banks to navigate crypto engagement independently and at their own risk-adjusted levels. While this relaxation of regulations is expected to encourage wider adoption of digital assets by mainstream financial institutions like BTC and ETH, market reactions are still pending.