According to the latest report, the Financial Stability Oversight Council (FSOC) is no longer opposed to cryptocurrencies and other digital assets, which were previously considered a threat to national security.

The cryptocurrency sector has been removed from the annual list of financial risks for the US system compiled by FSOC. Established in the aftermath of the 2008 mortgage crisis that devastated the global economy, FSOC was created as an early warning tool, allowing regulatory leaders to collectively identify emerging hazards.

For years, the digital asset industry appeared on this list. It was previously believed that products such as stablecoins and cryptocurrency exchange-traded funds (ETFs) could pose risks if the sector became overly interconnected with the broader financial system. However, in the report for 2025, released yesterday, this concern is no longer addressed.

The exclusion of cryptocurrencies from the list of potential threats reflects a shift in the approach to regulating digital assets. This likely indicates a more mature understanding of the cryptocurrency market and its potential integration into the traditional financial system. However, this does not signify a complete abandonment of oversight.

Instead of viewing cryptocurrencies as a systemic threat, regulators appear to be focusing on targeted oversight of individual market participants and specific operations. This approach allows for a more flexible response to emerging risks without stifling innovation in the sector. The introduction of clear rules and standards for the cryptocurrency market, exchanges, custodial services, and other market participants this year has evidently played a positive role in the decision to exclude cryptocurrency assets from the risk assessments.

This news is favorable for the cryptocurrency market, which has been experiencing challenging times lately.

Trading recommendations:

Regarding the technical outlook for Bitcoin, buyers are currently targeting a return to the $93,000 level, which opens a direct path to $95,000. From there, it would not be far to $97,300. The ultimate target will be around the peak at $99,300, and surpassing this level would indicate attempts to return to a bullish market. Should Bitcoin decline, I anticipate buyers at the $90,700 level. A return of the trading instrument below this area could quickly push BTC down to around $88,100, with the further target being the area of $85,800.

For Ethereum, a clear consolidation above the $3,349 level opens a direct path to $3,474. The ultimate target will be around the peak at $3,664, and surpassing this level would bolster bullish market sentiments and renew buyer interest. If Ethereum declines, I expect buyers at the $3,233 level. A drop below this area could swiftly send ETH down to around $3,126, with the further target being the $3,023 region.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.