On December 6, the Financial Stability Oversight Council approved its 2024 Annual Report, which reviewed financial market developments, identifies vulnerabilities, and recommended measures to manage financial stability risk. The report found the U.S. banking system resilient but highlighted areas requiring attention. Some recommendations included enhancing cybersecurity through partnerships and information sharing between state and federal agencies and private firms, ensuring depository institutions maintain sound risk management practices, including contingency planning for funding and liquidity events, and urging completion of the Basel III reforms. The Council also emphasized a need for legislative action to grant oversight powers to the FHFA, NCUA and other relevant agencies; this would give the regulators adequate examination and enforcement powers to oversee third-party service providers that interact with their regulated entities, like monitoring commercial real estate credit risks due to rising vacancies and borrowing costs. Additionally, the Council reiterated prior calls for a federal framework for stablecoin issuers and regulatory authority over the crypto-asset spot market. Finally, with respect to investment funds, the Council supported SEC reforms to improve money market fund resilience and transparency, while addressing liquidity risks in open-end funds and collective investment funds.