Federal Reserve’s supervision report shows 99% of banks well-capitalized, stays silent on crypto
The Federal Reserve Board published its semiannual Supervision and Regulation Report on December 1, covering banking conditions through mid-2025. The headline number: over 99% of US banks were classified as well-capitalized as of Q2 2025, with aggregate deposits hitting a record $18.3 trillion by August.
For the crypto industry, the most notable part of the report might be what it didn’t say. There was zero mention of cryptocurrency, digital assets, stablecoins, or anything token-adjacent.
Banking system in strong shape
Common equity tier 1 (CET1) risk-based capital ratios held steady at approximately 13% across both large and small institutions. A 13% ratio means banks are holding roughly $13 of core capital for every $100 of risk-weighted assets.
Liquidity levels told a similar story. Banks subject to the liquidity coverage ratio, a post-2008 rule requiring institutions to hold enough high-quality liquid assets to survive a 30-day stress scenario, remained well above regulatory requirements.
The $18.3 trillion in aggregate deposits represents a historic high. After years of concern about deposit flight following the regional banking turmoil of 2023, the trend has clearly reversed.
A shift in how the Fed supervises
Beyond the numbers, the report signals a meaningful change in how the Fed approaches its watchdog role. The emphasis is shifting from procedural compliance toward managing core financial risks.
The Fed also indicated plans to enhance transparency within its ratings frameworks.
The crypto silence speaks volumes
The complete absence of crypto-related discussion in the report is worth noting. Separate initiatives during this period have focused on developing frameworks for stablecoins and refining crypto supervision protocols, particularly those linked to legislation like the GENIUS Act. But those efforts exist in a different lane from the Supervision and Regulation Report.
The Fed apparently views crypto as a policy development challenge, not yet a systemic banking risk worth flagging in its core assessment of financial stability.
What this means for crypto investors
Investors should watch two things closely. First, whether future editions of this report begin incorporating digital asset risk assessments. Second, how the Fed’s separate stablecoin and crypto frameworks evolve, because those policy tracks are where the actual rules of engagement are being written.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Shiba Inu eyes bullish reversal as network activity surges 122%, targets $0.000014
BUILDon rallies as holders hit record 87,320 – Can B extend its gains?

Goldman Sachs Hedge Fund Chief: "Zero-Day Options" Suppress U.S. Stock Volatility, Technology and Energy Remain the Best Choices
The S&P 500 has experienced intraday fluctuations of less than 1% for 27 consecutive trading days, marking the longest period of low volatility since the pandemic. Goldman Sachs warns that this "calm" is the result of zero-day options strategies forcibly locking in the market, and once a catalyst emerges, the compressed volatility energy will be released all at once. Meanwhile, expectations for a rate hike in September are rising, market sentiment has dropped to its lowest point of the year, and fiscal sustainability risks loom large—is this pot of heating water going to boil for much longer?
Balancer eyes wind-down after restructuring fails to revive revenue
