The Monetary Stability Oversight Council has eliminated crypto from its checklist of systemic monetary threats in its 2025 annual report. This can be a dramatic regulatory shift attributable to the transformation occurring beneath the Trump administration.
The 86-page doc, accredited December 11, eliminates the dire warnings about digital belongings that dominated earlier years, as a substitute emphasizing accountable progress and regulatory readability for the sector.
The FSOC’s newest evaluation contrasts sharply with its 2024 report, which warned that stablecoins represented an acute vulnerability to runs absent applicable risk-management requirements.
This 12 months’s report acknowledges crypto’s function in innovation and financial improvement, whereas noting that current legislative progress has addressed lots of the issues that beforehand existed.
The council now describes digital belongings as facilitating safe, environment friendly transactions by means of distributed ledger expertise quite than framing them as destabilizing forces.
Legislative Progress and Banking Entry Reforms
The transformation stems largely from the passage of the GENIUS Act in July, which established America’s first complete federal framework for cost stablecoins.
The laws requires licensed issuers to keep up reserves in extremely liquid belongings, corresponding to U.S. Treasuries, and prohibits rehypothecation apart from restricted functions.
Treasury Secretary Scott Bessent famous within the report that continued use of dollar-denominated stablecoins helps the greenback’s function in worldwide finance.
Past stablecoins, federal businesses have systematically withdrawn restrictive steering that beforehand discouraged banks from participating with crypto companies.
The SEC eradicated prior-notification necessities for providing digital asset custody companies, whereas banking regulators rescinded joint statements that successfully pushed crypto exercise outdoors conventional finance.
The Federal Reserve ended its novel actions supervision program, returning oversight to regular supervisory processes.
The Workplace of the Comptroller of the Forex launched preliminary findings exhibiting all 9 largest nationwide banks imposed inappropriate restrictions on lawful crypto companies between 2020 and 2023.
JPMorgan Chase, Financial institution of America, Citibank, Wells Fargo, and others maintained inside insurance policies requiring escalated approvals or blanket limitations on digital asset corporations, alongside sectors corresponding to firearms and grownup leisure.
Comptroller Jonathan Gould described the practices as “dangerous to lawful enterprises” and an inappropriate use of nationwide financial institution charters.
The findings construct on President Trump’s August govt order guaranteeing truthful banking entry and state-level truthful entry legal guidelines in Florida, Idaho, and Tennessee, designed to stop ideological account closures.
Market Construction Laws Races Senate Deadline
Final week, Senator Cynthia Lummis pushed for rapid Senate Banking Committee markup of the Accountable Monetary Innovation Act earlier than the vacation recess, warning negotiations can not drift into February with out risking election-year paralysis.
She instructed the Blockchain Affiliation Coverage Summit that bipartisan drafts have been rewritten repeatedly, exhausting workers members as lawmakers wrestle to reconcile the Home and Senate approaches to defining which tokens fall outdoors securities classification.
@SenLummis says she desires a markup on the crypto market construction invoice subsequent week whilst workers are “exhausted” from nonstop revisions. #Crypto #USPolicy #Lummishttps://t.co/RadNIvnWLp
— Cryptonews.com (@cryptonews) December 9, 2025
The Home handed the Digital Asset Market Readability Act in July, giving the CFTC major oversight of digital commodities whereas preserving SEC authority over fundraising.
The Senate model makes use of the time period “ancillary belongings” and faces rigidity over decentralized finance regulation.
Senator Thom Tillis warned that lacking the December window might freeze the invoice for the remainder of 2026.
Nevertheless, Senator Mark Warner additionally steered finishing every little thing earlier than the vacation recess can be troublesome, noting the White Home nonetheless hadn’t offered last language on quorum and ethics guidelines.
Conventional Finance Embraces Tokenized Merchandise
JPMorgan Chase demonstrated the sector’s mainstreaming by launching its first tokenized money-market fund on the Ethereum community.
The My OnChain Web Yield Fund begins with $100 million of the financial institution’s capital earlier than opening to certified buyers with minimal investments of $1 million.
The MONY fund accepts subscriptions in money or USDC, demonstrating institutional adoption of crypto-native cost rails for settlement alongside conventional money.
JPMorgan is launching its first tokenized money-market fund on Ethereum, studies the WSJ. #JPMorgan #Ethereum https://t.co/bjjIFNFRnJ
— Cryptonews.com (@cryptonews) December 15, 2025
The launch follows the GENIUS Act’s regulatory readability, with Wall Road accelerating tokenization efforts throughout equities, bonds, and real-world belongings.
John Donohue, JPMorgan’s international liquidity head, cited a “huge quantity of curiosity from shoppers round tokenization” and the financial institution’s intention to guide the area with product lineups that match conventional money-market fund decisions on the blockchain.
The mixing of blockchain into core monetary merchandise, as soon as thought of distant from crypto, signifies the expertise is progressing from experimental to infrastructure-grade standing inside conventional finance.
The put up US Monetary Watchdog No Longer Sees Crypto as Systemic Menace: Report appeared first on Cryptonews.