US Financial Watchdog No Longer Considers Crypto a Systemic ThreatSince then, the Financial Stability Oversight Council (FSOC) has removed crypto from its list of systemic threats in its latest 2025 report. This comes following the passage of the GENIUS Act, which introduced a federal framework regarding payment stablecoins.
Major Events - GENIUS Act: Under this new law, licensed issuers will be mandatorily maintaining a reserve in highly liquid assets such as US Treasury instruments and engaging in rehypothecation only for specified activities.
- "Regulatory Reforms": Government agencies have retracted overly stringent regulatory guidance that had been spurring banks to shy away from partnering with cryptocurrency companies.
• Banking Access: Preliminary results from the Office of the Comptroller of the Currency showed that major banks had imposed undue restrictions on legitimate cryptocurrency companies.
Market Impact- Increased Adoption: Recognition by the report about the role of crypto in innovation and development could increase the adoption of this sector. - Tokenized Products: Traditional financial institutions are adopting tokenized products and JPMorgan Chase has introduced its initial tokenized money-market fund on the Ethereum platform. Future Outlook- Market Structure Legislation:Senator Cynthia Lummis urges an immediate Senate Banking Committee markup of the Responsible Financial Innovation Act prior to the holiday recess. - It could offer `regulatory clarity`. The proposed legislative measure could bring some needed clarity to the regulation of the crypto market if it is enacted into law.
