U.S. Treasury FSOC’s 2025 Annual Report warns that, despite resilient U.S. markets, rising cyber threats, AI risks, and market vulnerabilities demand tougher oversight and closer regulatory coordination

The report finds that U.S. markets and institutions continued to function effectively in 2025, supporting credit provision and market functioning, and highlights priority areas including bolstering Treasury market resilience, addressing cyber risk, enhancing supervision and regulation of depository institutions, and harnessing artificial intelligence to promote stability. It also calls for continued coordination among regulators, expanded use of technology and data sharing, and legislative action where needed to ensure the financial system remains…