Derived from Crypto.News, the Financial Stability Oversight Council (FSOC) has removed digital assets from its list of financial-system vulnerabilities in its 2025 annual report. The report reclassified crypto as a 'significant market development' amid growing institutional adoption, including spot Bitcoin and Ethereum ETFs and tokenization. The shift follows Trump’s Executive Order 14178, the GENIUS Act, and regulatory changes from the SEC and OCC that support stablecoin use and bank custody of crypto assets.
FSOC Reclassifies Crypto as 'Significant Market Development' in 2025 Report
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Summary
The Financial Stability Oversight Council (FSOC) reclassified crypto as a 'significant market development' in its 2025 report, removing it from the list of financial-system risks. Institutional adoption, including spot Bitcoin and Ethereum ETFs and tokenization, drove the shift. Regulatory moves like Trump’s Executive Order 14178, the GENIUS Act, and updates from the SEC and OCC on stablecoin use and crypto custody also influenced the decision. Liquidity and crypto markets have seen steady growth amid these developments. Efforts to Countering the Financing of Terrorism remain part of broader regulatory discussions.
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