The Financial Stability Oversight Council (FSOC) has softened its stance on cryptocurrencies and stablecoins in its 2025 annual report, moving away from previous assertions that these assets pose systemic financial risks. The report highlights the impact of the GENIUS Act, effective since July, which has established a federal regulatory framework for payment stablecoins, providing regulatory clarity and fostering innovation while managing risks. FSOC no longer reiterates warnings from its 2024 report about stablecoins being prone to runs and market concentration amplifying systemic risks. Concerns over illegal activities have also been downplayed, with FSOC noting that the majority of on-chain transactions are for legitimate purposes. The council indicates a shift in U.S. regulatory focus from "risk alert" to "institutional integration" regarding crypto assets.