According to the latest news, the Federal Reserve (Fed) has recently announced the termination of its special regulatory program for Crypto Assets and Distributed Ledger Technology (DLT). This decision marks a return to standard regulatory processes in the relevant field.

The project was originally established in 2023 to address the potential risks posed by innovative technologies. Its regulatory scope covers DLT, Crypto Assets, banking services that support cryptocurrencies, and the collaborative relationships driven by emerging technologies between banks and non-bank institutions.

The Federal Reserve stated that after a period of operation, they have gained a more comprehensive understanding of the related risks and therefore believe that these business activities can be incorporated into the regular regulatory framework. It is worth noting that in April of this year, the Federal Reserve also revoked multiple regulatory guidelines regarding Crypto Assets and Distributed Ledger Technology (DLT), including a requirement that related businesses must obtain a 'no objection letter' before launching.

The existence of this special regulatory project has had a substantial impact on the blockchain banking business plans. According to publicly available information from the Federal Deposit Insurance Corporation (FDIC), this project has hindered the launch of the 'USDF Consortium.' This consortium originally planned to promote blockchain interbank payments among community banks, but ultimately abandoned this plan due to regulatory pressure.

The Federal Reserve's decision to terminate the special regulatory program may open up new development space for the application of Crypto Assets and blockchain technology in the financial sector. However, this does not mean a relaxation of regulation, but rather an adjustment of regulatory methods. In the future, how related businesses will develop under the conventional regulatory framework remains a point of continuous attention for the industry.