FSOC Removes Crypto From Risk List Amid $100M Tokenized JPMorgan Launch
The Financial Stability Oversight Council (FSOC) has finally given up on listing cryptocurrencies as a major concern for 2025...
Quick overview
- The Financial Stability Oversight Council has shifted its stance on cryptocurrencies, focusing on responsible growth rather than concerns for 2025.
- The GENIUS Act introduces a regulatory framework for stablecoins, requiring issuers to maintain liquid reserves.
- Federal agencies are easing restrictions on cryptocurrencies, allowing banks to engage more freely with crypto businesses.
- JPMorgan Chase has launched a tokenized money fund, indicating a growing interest from institutions in integrating blockchain with traditional finance.
The Financial Stability Oversight Council (FSOC) has finally given up on listing cryptocurrencies as a major concern for 2025, indicating a seismic shift in regulators’ view of them. The 86-page report, which the board signed off on December 11th, turns the warnings that were docketed in the previous year’s report on its head, focusing instead on responsible growth and desperately needed clarity on these matters.
The council had, until recently, flagged stablecoins as potential problems that could trigger bank runs if they lacked proper safeguards. However, their view now is that the role that cryptocurrencies play in driving innovation and supporting economic development is the story of the day. They’re portraying these digital assets as safe, efficient ways to make transactions, using all that fancy distributed ledger tech to get the job done.
The US government completely reversed its crypto stance: The data is striking:
KEY FACTS:
SEC dropped 60% of crypto cases since Trump took office
Only 4% of non-crypto cases dismissed
Binance ✅ Ripple ✅ Gemini ✅: All clearedBIG NEWS: FSOC removed crypto from "systemic risk"… pic.twitter.com/sUj7OwwcDh
— Crypto Patel (@CryptoPatel) December 16, 2025
Some of the things that have driven this shift include
- The GENIUS Act, which lays out a new set of rules for stablecoins, including the need for liquid reserves
- Allowing banks to deal with crypto under the reforms put in place by the Trump administration
- Bending the SEC and bankers to ease up on their restrictions around crypto
Treasury Secretary Scott Bessent reckons that the deal here is that properly regulated, dollar-backed stablecoins are a great way to strengthen the dollar as a global currency – it reflects the idea that innovation and monetary policy arent at odds.
Legislative and Banking Reforms Support Growth
The GENIUS Act, which took effect in July, is the first major federal law to create a regulatory framework for payment stablecoins. The rules require anyone who wants to issue them to have a stash of liquid assets, such as US bonds, so that if things get tough, they can pay out.
Also, the various federal agencies have started to ease up on some of the crazy, restrictive guidance they had been putting out:
- The SEC has stopped requiring companies to give them advance notice before they store digital assets
- Banking regulators have ditched the joint statements that had been stopping banks from dealing with crypto
- The Federal Reserve has shut down its special crypto supervision program
The Office of the Comptroller of the Currency (OCC) has found that the nine largest US banks – including JPMorgan, Bank of America, Wells Fargo, and others – had been getting in the way of crypto businesses when they shouldn’t have. Comptroller Jonathan Gould reckons this was “harmful to honest businesses” and just plain inconsistent with the way national banks are supposed to be run.
Also, the state-level fair access laws in Florida, Idaho, and Tennessee, plus the executive order issued by President Trump, now protect crypto businesses from having their accounts shut down due to politics rather than any wrongdoing.
The US Financial Stability Oversight Council (FSOC) has removed cryptocurrency from its list of systemic threats in its 2025 annual report. pic.twitter.com/xZ7UeLD9Z8
— Beejorn.crypto (@beejorn) December 16, 2025
Wall Street Embraces Tokenization
Things are moving fast. JPMorgan Chase has launched the MONY fund, a $100 million tokenized money fund on Ethereum that puts it all in one place. It’s open to qualified investors who put in at least a million bucks, and you can put in either real cash or USDC.
It basically shows that tokenization of regular financial products is a real thing now.
It also shows how blockchain can be used with the existing money-market infrastructure, and that this is really where things are headed now.
It also means that big institutions are increasingly entering the crypto market.
John Donohue, global liquidity head at JPMorgan, said they are seeing a “massive amount of interest” from clients in tokenized assets, and that this is now moving from the experimental to the mainstream. The MONY fund shows how the new clarity and banking reforms are finally unlocking opportunities for crypto businesses and traditional finance to work together at scale.
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