US FSOC Annual Report Removes Cryptocurrency Risk Warning

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【US FSOC Annual Report Removes Cryptocurrency Risk Warning】The Financial Stability Oversight Committee (FSOC) completely removed references to digital assets being a “vulnerability” to the financial system in its latest annual report. Treasury Secretary Scott Bessent stated that the new committee no longer focuses primarily on “identifying financial system risks,” but instead emphasizes the role of long-term economic growth in supporting financial stability.
Unlike the Biden administration’s emphasis on stablecoin regulation and crypto risks, the 2025 FSOC report under the Trump administration was significantly shortened and no longer included any regulatory recommendations targeting crypto assets. The report noted that regulatory agencies have retracted previous widespread warnings about regulated financial institutions’ involvement in the crypto sector and highlighted the positive development of the digital asset industry, while still noting the need to monitor the abuse risk of USD stablecoins. The report also pointed out that the continued growth of USD-pegged stablecoins is expected to strengthen the USD’s position in the global financial system over the next decade.

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