The U.S. Federal Reserve is discontinuing its "Novel Activities Supervision Program" aimed at overseeing banks involved in crypto, citing a strengthened understanding of those activities. This decision reflects a broader regulatory pullback and a shift in approach towards digital assets under the current administration.

The Federal Reserve has eliminated 'reputational risk' from its bank examination procedures, potentially allowing banks to better serve digital asset firms and address complaints about "debanking" in the crypto industry. This move has been welcomed by pro-crypto lawmakers, though they emphasize that further action is necessary.