The Federal Reserve has recently adjusted its approach to crypto regulation within the banking sector, signaling a shift toward more flexible oversight. This move involves revoking previously issued guidance related to cryptocurrency activity by banks, including a requirement for advance notifications on planned activities and a supervisory nonobjection process for dollar token engagement. Instead, these processes will be integrated into standard supervisory practices. The Federal Reserve is working alongside other regulatory bodies to assess whether new guidance is needed to balance innovation with systemic protection, indicating a continued focus on the evolving landscape of crypto in finance.