The Financial Stability Oversight Council has removed crypto from its list of systemic financial threats in its 2025 annual report. This is a dramatic regulatory shift attributable to the transformation happening under the Trump administration.
The 86-page document, approved December 11, eliminates the dire warnings about digital assets that dominated previous years, instead emphasizing responsible growth and regulatory clarity for the sector.
The council now describes digital assets as facilitating secure, efficient transactions through distributed ledger technology rather than framing them as destabilizing forces.
This year’s report acknowledges crypto’s role in innovation and economic development, while noting that recent legislative progress has addressed many of the concerns that previously existed.
The FSOC’s latest assessment contrasts sharply with its 2024 report, which warned that stablecoins represented an acute vulnerability to runs absent appropriate risk-management standards.
The legislation requires licensed issuers to maintain reserves in highly liquid assets, such as U.S. Treasuries, and prohibits rehypothecation except for limited purposes. Treasury Secretary Scott Bessent noted in the report that continued use of dollar-denominated stablecoins supports the dollar’s role in international finance.
The transformation stems largely from the passage of the GENIUS Act in July, which established America’s first comprehensive federal framework for payment stablecoins.
