FSOC downplays crypto risk assessment, key terms removed from 2025 report

According to PANews, the U.S. Financial Stability Oversight Council (FSOC) has made a notable adjustment in its latest 2025 annual report—completely removing the long-used term “vulnerability.” This change reflects a shift in regulatory attitude toward digital asset risk assessment.

Significant Changes in Report Language Convey Policy Signals

Treasury Secretary Scott Bessent openly stated in the report’s preface that previous analytical frameworks focused on identifying risk factors that could threaten the stability of the U.S. financial system. However, the 2025 report’s table of contents has thoroughly moved away from the previous “vulnerability” context, adopting a more neutral narrative. This change in wording is not just a textual adjustment but also signifies a subtle shift in regulatory thinking.

Digital Assets Receive Relatively Positive Evaluation

Unlike previous reports that took a cautious stance on the crypto industry, the 2025 version mainly affirms the development advantages of the digital asset sector, without proposing specific regulatory recommendations or expressing obvious concerns about the industry. This shift indicates that FSOC’s understanding of the digital asset ecosystem is gradually evolving.

Stablecoins Still Require Vigilance, but the U.S. Dollar’s Status Is Affirmed

It is worth noting that when discussing illegal financial activities, the report still highlights the potential risks of stablecoins being misused for illicit transactions. At the same time, the report emphasizes that the widespread use of dollar-pegged stablecoins within the next decade is expected to further solidify the U.S. dollar’s dominant position in the global financial system. This reflects the regulatory body’s complex considerations of both risk prevention and leveraging stablecoins to enhance the international influence of the U.S. dollar.