FSOC Shifts Focus from Crypto Risks to Economic Growth in 2025 Report
The Financial Stability Oversight Council's latest report marks a strategic pivot. crypto assets, previously flagged as systemic vulnerabilities, have disappeared from the watchdog's threat assessment. Treasury Secretary Scott Bessent frames this as part of a broader recalibration—where sustainable growth becomes the bedrock of financial stability.
The GENIUS Act now anchors U.S. crypto regulation, establishing federal oversight for stablecoins. Reserve requirements and multi-agency supervision create guardrails for dollar-pegged tokens. This legislative framework arrives alongside the TRUMP administration's push to roll back restrictive guidance on institutional crypto engagement.
Market observers note the timing coincides with Bitcoin's resurgence above $60,000 and Ethereum's Dencun upgrade going live. The regulatory thaw appears to be fueling institutional interest—Coinbase reported record custody inflows, while BlackRock's IBIT ETF crossed $15 billion in AUM last week.