Federal Reserve’s supervision report shows 99% of banks well-capitalized, stays silent on crypto

The Fed's semiannual banking health check reveals record deposits and strong capital ratios, but digital assets didn't even get a mention.

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Add us on Google by Editorial Team Jun. 3, 2026

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.

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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.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.