The US government effectively retired the narrative justifying Operation Choke Point 2.0 yesterday.
US Watchdog Drops Crypto Hazard Tag As Senate Bill Advances
12 December 2025 - 11:00 CET
By Stu Clelland
The Financial Stability Oversight Council (FSOC) released its 2025 Annual Report, and digital assets are notably absent from the "potential hazards" list.
This is a massive pivot. For three years, this specific "hazard" designation allowed banking regulators to pressure financial institutions to cut ties with crypto firms. The Treasury has signaled to compliance desks that the regulatory blockade is over.
Systemic risk narrative ends
The timing is surgical. The report argues that digital asset markets remain volatile but no longer pose a contagion risk to the broader US economy.
This removes the primary weapon used to stall legislation. Since crypto is no longer a systemic threat, the justification for emergency measures vanishes.
Senate moves on regulation
The legislative dam is breaking alongside the regulatory one. Senate Banking Committee Chair Tim Scott confirmed "real progress" on the comprehensive crypto market structure bill following meetings with top bank CEOs this week, according to The Block.
Washington is restructuring to accommodate the industry. Pro-crypto nominees for the CFTC and FDIC are moving through confirmation hearings, and agencies are preparing to integrate digital assets rather than ban them.
