Recently, the U.S. Federal Reserve announced the termination of a special regulatory program that was launched in 2023. This program was originally intended to strengthen the review of banks involved in the custody of encryption assets, stablecoin issuance, and the application of Blockchain technology in emerging businesses. This decision marks that the related businesses will be incorporated into the regular banking regulatory framework and will no longer be treated as a separate category.

This policy adjustment may have far-reaching effects. First, it could pave the way for traditional banks to develop encryption-related services, potentially improving the integration of cryptocurrency exchanges and payment platforms with the banking system. Secondly, this move sends an important signal: crypto asset activities are no longer seen as a high-risk experimental field, which could accelerate the process of mainstream crypto assets like Bitcoin and Ethereum integrating into the traditional financial system.

The Federal Reserve's decision reflects the evolution of regulators' understanding of the cryptocurrency financial sector. As blockchain technology matures and the cryptocurrency asset market becomes more regulated, regulators seem to be adopting a more inclusive and pragmatic approach. This shift may provide greater room for financial innovation, while also posing new challenges in balancing the encouragement of innovation with the maintenance of financial stability.

It is worth noting that although the regulatory attitude is becoming more lenient, this does not mean that the regulation of encryption assets will be relaxed. On the contrary, incorporating them into a regular regulatory framework may mean a more systematic and comprehensive approach to regulation. For industry participants, this presents both opportunities and challenges, requiring continuous innovation on the basis of compliant operations to promote the deep integration of encryption finance with traditional finance.

With the changes in the policy environment, we can expect to see more traditional financial institutions entering the encryption field in the future, and the liquidity and acceptance of encryption assets are expected to further improve. However, market participants still need to remain vigilant and pay attention to the specific implementation of regulatory policies, as well as the new opportunities and risks that may arise.