Financial Stability Oversight Council drops crypto ‘vulnerability’ label as Trump order and GENIUS Act hit
PositiveCryptocurrency
- The Financial Stability Oversight Council (FSOC) has officially removed cryptocurrencies from its systemic risk list, a decision influenced by President Trump's pro-crypto executive order, the introduction of the GENIUS Act, and a shift in regulatory stance from the SEC and OCC. This change reflects a growing acceptance of digital assets within the U.S. banking system, particularly with the increasing use of ETFs and stablecoins.
- This development is significant as it signals a more favorable regulatory environment for cryptocurrencies, potentially encouraging further adoption and innovation in the sector. The removal from the risk list may also enhance confidence among investors and financial institutions regarding the stability and legitimacy of digital assets.
- The broader context reveals ongoing tensions between regulatory bodies and traditional banking institutions regarding the integration of cryptocurrencies. While some regulators, like the SEC, have shown support for the evolution of digital assets, there remains scrutiny from political figures and opposition parties, highlighting the complex landscape of cryptocurrency regulation in the U.S.
— via World Pulse Now AI Editorial System
