U.S. Financial-Risk Watchdog, FSOC, Erased Digital Assets as a Potential Hazard

Core Insights - The crypto sector has been removed from the Financial Stability Oversight Council's (FSOC) annual list of financial risks to the U.S. system, indicating a shift in focus away from vulnerabilities in the financial system [1][2][3] Group 1: FSOC Report Changes - The FSOC, established post-2008 financial crisis, aimed to identify potential dangers to the financial system, previously including the digital assets industry as a concern [2] - The 2025 FSOC report has eliminated the term "vulnerabilities" from its table of contents, reflecting a change in the analysis approach [3] - The 2024 report emphasized the need for regulation of stablecoins and spot markets, while the 2025 report does not include specific recommendations or concerns regarding digital assets [4] Group 2: Regulatory Stance on Digital Assets - The 2025 FSOC report acknowledges the previous caution from U.S. financial regulators regarding the risks of the crypto industry, indicating a withdrawal from that stance [5] - The report highlights the strengths of the growing digital assets sector, although it notes potential misuse of stablecoins for illicit finance transactions [5]