Green light. The Financial Stability Oversight Council (FSOC) was created in 2010 as part of the Dodd-Frank Act, a legislative response to the 2008 financial crisis. This council's mission is to monitor systemic risks to the financial stability of the United States and to coordinate regulatory efforts among various federal agencies. It can recommend measures to mitigate identified risks and has the power to designate certain financial institutions as 'systemically important', subjecting them to increased oversight. In its latest report, the institution no longer considers cryptocurrency a risk to the American economy, which is good news for the US industry.
Key points of this article:
The Financial Stability Oversight Council has stopped considering cryptocurrencies as a risk to the US economy, marking an unexpected and favorable turning point for the industry.
Despite the absence of risk, the report continues to promote a regulatory framework for stablecoins, while highlighting their potential to enhance the role of the US dollar internationally.
The FSOC no longer sees cryptocurrency as a risk
Each year, the FSOC publishes a report on the various risks facing the US economy. Unsurprisingly, for several years, cryptocurrency has been among these risks.
Thus, in 2024, the FSOC report estimated that “cryptocurrencies, and more particularly stablecoins, posed a risk to the economy.” Therefore, the report encouraged Congress to establish a regulatory framework for stablecoins.
But a turnaround! In the report from December 11, cryptocurrencies are no longer really a “risk,” although its authors continue to encourage Congress to establish a regulatory framework; it is no longer a question of risk in the strict sense.
On the contrary, the section dedicated to cryptocurrency highlights the progress made by American regulators:
“The member agencies of the Council have continued to make progress in implementing the recommendations of the Council contained in the 2021 report on digital assets. In 2025, the Council published a report on crypto activity in the United States that contains additional recommendations for Congress and government agencies to enable innovation and American leadership in digital financial technology.”
2025 Annual report – Source: Financial Stability Oversight Council
The shadow of Donald Trump looms over American regulatory bodies
Stablecoins, an ally of the dollar?
The report nonetheless raises a point of concern regarding stablecoins that could be used to “facilitate illicit transactions.” However, the report also emphasizes that these cryptos could be an asset for the US dollar:
“The continued use of USD-denominated stablecoins should support the role of the US dollar in the international financial system over the next decade.”
2025 Annual report – Source: Financial Stability Oversight Council
Gradually, all instances of American regulation and advisory are thus shifting in favor of crypto and companies in the sector. A good sign for the future operations.
