The Financial Stability Oversight Council (FSOC) has officially removed digital assets from its list of potential systemic risks. This is a significant step in the regulatory policy of US regulators.
The accompanying letter to the FSOC report, signed by U.S. Treasury Secretary Scott Bessint, says the board’s decision is aimed at long-term economic growth, not identifying every theoretical «vulnerability.»
This approach differs significantly from the 2022 FSOC report, which stated that cryptocurrency transactions «may pose a threat to the stability of the U.S. financial system.» At that time, the American regulator expressed concerns about leverage, the interconnectedness between traditional financial and cryptocurrency markets, and the lack of unified oversight.
The Council’s new report makes no mention of the obvious systemic risks associated with digital assets. Instead, it highlights positive changes in the cryptocurrency industry: a clearer regulatory framework and the removal of warnings about banks interacting with the cryptocurrency sector.
However, the FSOC acknowledges that US dollar-denominated stablecoins still require monitoring, «particularly with respect to potential misuse in illicit financial transactions.» This language is much more lenient than that used in previous years.