Digital assets are no longer classified as a systemic risk by the Financial Stability Oversight Council (FSOC), effectively removing a regulatory drag on U.S. banks. This change marks the end of a three-year period where digital assets were seen as a significant threat to financial stability. The FSOC's annual reports from 2022 through 2024 progressively shifted the language around digital assets from a focus on risks to a more neutral stance. By 2025, the FSOC stopped labeling them as vulnerabilities, indicating a significant shift in regulatory outlook. The implications for Bitcoin and other cryptocurrencies are substantial. With the FSOC's reassessment, institutional pathways for Bitcoin investment may open up, especially as the 2026 political climate could shape future regulations. The article highlights that global regulators are still concerned about the interconnectedness of crypto and traditional finance, suggesting tighter international coordination despite the U.S. easing its stance. The FSOC's downgrade of crypto reflects a belief that current regulatory tools are sufficient to manage existing risks, provided that key factors like spot ETF stability and stablecoin backing remain intact. As the landscape evolves, the focus has shifted from outright bans to a more nuanced approach that allows for growth while monitoring potential risks. This creates both opportunities and challenges for institutions looking to engage with digital assets in the coming years.