The FSOC’s 2025 annual report adopts a notably softer and more integration-focused tone toward crypto assets compared to previous years, moving away from warnings about systemic risks and contagion, particularly from stablecoins. This change reflects recent regulatory developments, such as the July GENIUS Act, which creates a federal framework for payment stablecoin issuers, providing regulatory clarity, reserve requirements, and increased accountability. Federal banking agencies have also eased requirements for banks engaging in crypto-related activities, withdrawing prior risk-focused guidance. The report no longer asserts that stablecoins are acutely vulnerable to runs or that market concentration poses an existential threat but instead views these risks as manageable within a clarified regulatory structure. FSOC now highlights a need for practical guidance on custody, AML/CFT obligations, and digital asset pilots, emphasizing ongoing supervision but less alarmism. The council also downplays illicit activity within crypto markets, noting that legitimate on-chain activity outweighs criminal use. Experts attribute the shift to regulatory progress, calmer markets, and political support under President Trump, stressing that while risks remain, they are now treatable through oversight rather than exclusion. This U.S. shift contrasts with Europe’s ongoing warnings, while the UK plans to follow a similar regulatory path from 2027.