FSOC Report Omits Cryptocurrency Risks in 2025 Analysis

According to PANews, the Financial Stability Oversight Council (FSOC) has decided not to include cryptocurrencies in its annual list of risks to the U.S. financial system. This change reflects a broader shift in focus away from the vulnerabilities of the financial system. The 2025 FSOC report has entirely removed the term 'vulnerability,' which was previously common in such analyses. In the opening letter of the report, Treasury Secretary Scott Bessent acknowledged that past analyses concentrated on identifying potential threats to the financial system. The 2025 report does not offer recommendations regarding digital assets nor express explicit concerns about the industry. It details how U.S. financial regulators with authority over cryptocurrency have altered their previous policy positions. While the report generally praises the advantages of digital assets, it notes in the 'illegal finance' subsection that stablecoins could be misused to facilitate illicit financial transactions. However, it also predicts that the continued use of dollar-denominated stablecoins over the next decade is expected to further solidify the dollar's position in the international financial system.