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The US FSOC annual report removes cryptocurrency risk warnings

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2025-12-11 22:43:22
In its latest annual report, the Financial Stability Oversight Council (FSOC) completely removed the reference to digital assets as a "vulnerability" in the financial system. Treasury Secretary Scott Bessent said the new commission would no longer focus on "identifying risks to the financial system," instead emphasizing the role of long-term economic growth in underpinning financial stability.
Unlike the Biden administration's emphasis on stablecoin regulation and crypto risks, the 2025 FSOC report under the Trump administration has been significantly reduced in size and no longer makes any regulatory recommendations for crypto assets. The report notes that regulators have withdrawn their previous general warnings about the involvement of regulated Financial Institutions Groups in the crypto space, and highlights positive developments in the digital asset industry, while noting that the risk of abuse of U.S. dollar stablecoins still needs attention. The report also notes that the continued growth of U.S. dollar-denominated stablecoins is expected to strengthen the U.S. dollar's role in the global financial system over the next decade.
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