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FSOC Removes Crypto From Systemic Risk List, Softens Stance in 2025 Review

The shorter document signals a pro‑innovation turn, steering detailed policy to the President's Working Group.

Overview

  • The annual report drops the long‑used “vulnerabilities” framing and no longer lists digital assets as a financial‑stability threat.
  • The 87‑page 2025 report omits prior recommendations to Congress on stablecoins and spot crypto markets that were included in 2024.
  • Treasury Secretary Scott Bessent’s opening letter reframes the council’s mission toward supporting long‑term growth rather than cataloging theoretical hazards.
  • Regulators still flag illicit‑finance risks for stablecoins but say continued use of dollar‑denominated stablecoins is expected to support the dollar’s international role.
  • The report notes regulators have withdrawn broad cautions to banks about crypto exposure and points readers to this year’s President’s Working Group report for further actions.