FSOC Drops Crypto from Systemic Threat List in Regulatory Shift
The Financial Stability Oversight Council's 2025 annual report marks a stark reversal in U.S. crypto policy, removing digital assets from its list of systemic financial threats. The 86-page document, approved December 11, replaces previous warnings with language emphasizing responsible innovation and regulatory clarity.
The shift follows July's GENIUS Act, which established federal stablecoin standards requiring licensed issuers to maintain liquid reserves. Where the 2024 report highlighted stablecoin run risks, the current assessment acknowledges blockchain's role in efficient transactions and economic development.
Treasury Secretary Janet Yellen noted the change reflects 'measured progress toward safeguarding markets without stifling technological advancement.' Market observers attribute the pivot to clearer legislative frameworks and improved banking access for crypto firms.
