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FSOC Drops Crypto ‘Vulnerability’ Label in 2025 Stability Report

The move follows new U.S. rules that mainstream ETFs, custody, and fully backed stablecoins.

Overview

  • Digital assets were reclassified as “significant market developments to monitor,” citing institutional uptake through spot Bitcoin and Ethereum ETFs and growing tokenization.
  • FSOC said its stance depends on orderly ETF flows, full reserve backing for stablecoins, and no major failures in custody or cross‑chain bridges.
  • President Trump’s Executive Order 14178 revoked the prior crypto order, promoted responsible digital‑asset growth, and prohibited a U.S. central bank digital currency.
  • Congress passed the GENIUS Act requiring 100% backing for permitted payment stablecoins with oversight by the Fed, OCC, FDIC, and state regulators, while SEC and OCC moves opened bank custody and intermediation.
  • Global watchdogs FSB and FATF warned that fragmented rules, implementation gaps, and illicit‑finance risks persist despite the U.S. policy shift.