FSOC Drops Crypto From Financial Vulnerabilities List in 2025 Report
The Financial Stability Oversight Council (FSOC) has removed digital assets from its list of financial stability vulnerabilities in its 2025 annual report published this month. The change reflects the council's updated assessment that crypto markets and related intermediaries no longer pose the same level of systemic risk identified in prior years, citing improved market structures, liquidity, and oversight developments.
The decision could ease regulatory pressure and bolster market confidence, but it does not mean crypto is free from scrutiny. FSOC and other regulators emphasize continued monitoring and targeted policy work where risks remain, so market participants should view the update as a reduction in perceived systemic threat rather than deregulation. The move may encourage further institutional participation while keeping supervisory focus on market conduct and resilience.