U.S. Removes 'Systemic Risk' Label for Crypto, Paves Way for Bank Integration
On December 16, 2025 the FSOC signaled a major policy pivot, removing the long-standing ‘systemic risk’ label for crypto and shifting from repeated risk warnings toward active integration. The council’s statement encourages banks to participate in digital-asset services while calling on federal agencies and Congress to produce a comprehensive, unified regulatory framework to replace patchwork guidance.
The change matters because it reduces a key stigma that has limited institutional involvement and could accelerate bank custody, custody-as-a-service, and cleared crypto products. That said, FSOC emphasized continued oversight and prudential safeguards, so market access will depend on forthcoming rulemaking and supervisory approvals. Investors and firms should watch the drafting of unified standards and how regulators translate the council’s direction into concrete rules and licenses.