The FSOC annual report softens its stance on crypto and stablecoins: the focus shifts to institutional integration.

The Financial Stability Oversight Council (FSOC) has significantly softened its stance on crypto assets and stablecoins in its latest 2025 annual report, abandoning its previous hardline characterization of them as systemic financial risks. The FSOC stated that the GENIUS Act, which took effect in July of this year, has established a federal regulatory framework for payment-type stablecoins, providing regulatory clarity and helping to promote domestic stablecoin innovation while controlling risks. The FSOC did not reiterate its 2024 report's warnings about stablecoins being "prone to runs" and that high market concentration could amplify systemic risks, and it downplayed concerns about illicit activities, stating that the vast majority of on-chain transactions are for legitimate purposes. The FSOC believes that the focus of US regulation of crypto assets is shifting from "risk warnings" to "institutional integration." (Decrypt)