The United States Financial Stability Oversight Council (FSOC) has adopted a softer tone towards cryptocurrencies in its latest 2025 report. The report highlights that the implementation of the GENIUS Act has clarified regulations surrounding cryptocurrencies, which is expected to improve the regulatory landscape of the sector. This development aims to provide a clearer and more stable legal framework for the crypto market. FSOC, a federal agency responsible for ensuring the stability and security of the US financial system, had previously taken a stringent approach due to the rising popularity and volatility of cryptocurrencies, which posed risks to financial stability. However, the new rules and regulations introduced under the GENIUS Act have enhanced oversight in this area. The GENIUS Act is recent legislation designed to bring transparency and legal clarity to the regulation of cryptocurrencies and digital assets, offering investor protection and reducing the likelihood of illicit activities. It also provides clear guidelines for crypto companies, fostering market stability. This softer stance is welcomed by investors and the market as it is expected to restore confidence and create new investment opportunities. Nonetheless, experts caution that volatility and risks in cryptocurrencies remain and continuous regulatory supervision is necessary to prevent adverse effects on the financial system. In the coming months, close attention will be paid to FSOC’s oversight and the effectiveness of the GENIUS Act to determine whether these measures succeed in promoting stability and transparency in the cryptocurrency sector.
Source: decrypt
