The Financial Stability Oversight Council has taken a noticeably softer approach to crypto assets in its 2025 annual report.
The report marks a shift from earlier warnings that digital assets posed systemic risks to financial stability.
FSOC linked the change in tone to new federal regulation and evolving political support for the crypto industry.
Central to the shift is the GENIUS Act, enacted in July, which establishes a federal framework for payment stablecoins.
The Council said the legislation provides regulatory clarity while encouraging innovation within defined safeguards.
Previous reports highlighted risks such as stablecoin runs, weak governance and market contagion.
Those concerns were largely absent from the 2025 report.
FSOC instead emphasised supervision and integration of crypto activity into the existing financial system.
“The Council recommends that member agencies continue to proactively address outstanding issues related to digital asset engagement,” the FSOC said.
The report listed custody, tokenisation, stablecoin reserves and AML obligations as priority areas.
Federal banking agencies have also clarified that banks may engage in certain crypto activities.
Regulators withdrew earlier guidance that warned banks about heightened crypto risks.
FSOC no longer repeated claims that stablecoins are uniquely vulnerable to market runs.
“What changed isn’t that stablecoins became safe, but that regulation finally caught up,” Yan Ketelers said.
Ketelers said regulators are now treating crypto risks as manageable rather than existential.
FSOC also downplayed concerns about illicit crypto use compared with past reports.
The Council said most on-chain activity remains legitimate.
The shift contrasts with Europe’s continued caution on stablecoins.
UK regulators have signalled plans to regulate crypto from 2027.
“Opposing stablecoin innovation while the US promotes it risks global disadvantage,” Will Beeson said.