The Financial Stability Oversight Council (FSOC) has removed cryptocurrencies from its list of potential vulnerabilities to the financial system in its latest annual report. The report indicates a shift from previous caution by regulators regarding financial institutions' involvement in crypto activities, acknowledging the growth trend of the crypto industry. However, it warns that stablecoins could still be used for illicit financial activities. Additionally, the report suggests that the continued use of dollar-denominated stablecoins is expected to support the dollar's role in the international financial system over the next decade.