## From "Threat" to "Monitoring Needed": How US Cryptocurrency Policies Have Reversed 180 Degrees in 3 Years

A significant turning point has just occurred in how the US manages digital assets. The 2025 report from the Financial Stability Oversight Council (FSOC) — the organization overseeing the stability of the US financial system — officially removes the term "vulnerability" when referring to crypto-assets and Bitcoin. Instead, they are categorized under "market developments to monitor." This is not just a change in wording but a comprehensive policy reversal spanning three years.

### Past: When Crypto Was Considered a "High-Risk Priority Area"

To understand the significance of this change, we need to look back at what happened from 2022 to 2024. During President Joe Biden’s administration, Executive Order 14067 was signed with the ambition to regulate the entire cryptocurrency sector. FSOC at that time publicly labeled digital assets as a "priority area" with potential risks to the stability of the entire financial system.

In 2023, the situation became more "stringent." FSOC listed crypto among specific "financial stability vulnerabilities," with particular warnings about stablecoins — tokens pegged to the US dollar. Regulators feared stablecoins could face mass withdrawals if not subject to strict regulations like traditional banks.

In 2024, the monitoring was "lighter," but FSOC still warned that stablecoins pose an "inherent risk." The common theme over these three years: Bitcoin, Ethereum, and digital assets were all viewed as "issues to be controlled, not opportunities."

### Present: A Complete Policy Reversal

The 2025 FSOC report reflects a completely different mindset. The opening letter from Treasury Secretary Scott Bessent redefines the council’s mission: instead of just identifying vulnerabilities, the focus should be on long-term economic growth. As a result, the entire "vulnerability" section has been wiped out. Bitcoin, Ethereum, asset tokenization, stablecoins — all are now "upgraded" to "areas to monitor" rather than "areas to control."

This is not merely a decision by a single council. It results from three coordinated actions:

**First: Executive Order from President Trump**

Executive Order 14178 was signed immediately after taking office, directly rescinding Biden’s Executive Order 14067. Instead of "controlling crypto," the new policy is to "support responsible development and use of digital assets." Notably, this order bans the issuance of a US central bank digital currency (CBDC) — a move seen as favoring Bitcoin and private stablecoins.

**Second: Legislation from Congress**

The GENIUS Act (signed in July 2025) establishes a comprehensive legal framework previously demanded by FSOC. It allows authorized entities to issue stablecoins, with 100% reserve backing and oversight by the Fed, OCC, FDIC, and state agencies. The "task force" (lực lượng đặc nhiệm)— a term many questioned — which was created to handle specific, temporary tasks, will be replaced by an official, long-term oversight mechanism.

**Third: Guidance from Regulatory Agencies**

SEC repealed SAB 121 (an old accounting guideline that made banks hesitant to hold crypto), replacing it with SAB 122. OCC issued Interpretive Letter 1188, permitting national banks to engage in crypto transactions with a "riskless" model — meaning buying from one customer and selling to another without holding a proprietary position.

The next step for OCC is to grant "preliminary national trust bank" licenses to major crypto-native companies: Circle, Ripple, BitGo, Paxos, and Fidelity Digital Assets. This allows them to operate under federal supervision rather than being isolated outside the system.

### Practical Significance: From Statements to Actions

Why emphasize that this is "policy, not just words"? Because US regulators have coordinated coherently. According to guidance from the Congressional Research Service, each FSOC member must confirm that "all reasonable measures to address systemic risks have been taken" or explain what additional steps are needed. When the 2025 report stops calling crypto a "vulnerability," and SAB 121 is repealed, the GENIUS law is passed, and OCC opens the door for crypto-native banks, it demonstrates a reduction in escalation and coordination, not conflicting signals.

### Points Still to Watch

However, the US change does not mean the entire world is at ease. Global regulatory bodies remain cautious:

- **Financial Stability Board (FSB)** notes that the global crypto market cap has nearly doubled to $4 trillion but warns of a "notable enforcement gap" in standard implementation. Financial stability risks are currently "limited" but will increase as links between crypto and traditional finance expand.

- **Financial Action Task Force (FATF)** — an organization established to combat international money laundering — reports that only 40 out of 138 jurisdictions are "largely compliant" with crypto AML rules. Billions of dollars of illicit funds are still being processed through cryptocurrency channels.

- FSOC 2025 still reminds that US dollar stablecoins could be exploited to evade sanctions and facilitate illegal finance, requiring continued oversight.

### Bitcoin in 2026: Opportunity or Trap?

The decision to remove "vulnerability" has eliminated the macro stigma that big banks, insurance companies, and pension funds once feared. SEC approval of spot Bitcoin and Ethereum ETFs in 2024, along with the new ETF system in 2025, has normalized institutional exposure to BTC.

The GENIUS law and OCC’s riskless-principal guidance give US banks a "fast lane" in legal terms: holding stablecoin reserves, acting as intermediaries between Bitcoin ETFs and stablecoin channels, and tokenizing assets. These infrastructures will serve as channels to expand Bitcoin’s financial role in 2026 — not because FSOC endorses BTC, but because systemic concerns are being replaced by standardized oversight and anti-money laundering controls.

However, policy does not immunize Bitcoin from political risks. In the upcoming election year, Congress may reconsider regulations. SEC and CFTC still dispute jurisdiction over other tokens. And if the crypto market continues to double, FSB and FATF warn that increased links could lead to real financial stability crises, forcing regulators to "return" to language of "vulnerability."

In summary: Bitcoin enters 2026 with an established legal framework. The test is whether that framework can withstand the next stress event or if FSOC’s "monitoring developments" language is only temporary before "vulnerability" returns.