US Treasury Secretary Proposes Looser Financial Regulations Amid Stability Concerns

Fri Dec 12 2025 10:49:53 GMT+0200 (Eastern European Standard Time)

In a bold move, U.S. Treasury Secretary Scott Bessent suggests overhauling the Financial Stability Oversight Council to ease regulatory burdens, stirring concerns among critics over potential risks to financial stability.

U.S. Treasury Secretary Scott Bessent has called for a reevaluation of the Financial Stability Oversight Council's regulations, proposing a shift towards looser oversight of the financial system. In his letter, Bessent highlights the need to remove what he views as overly burdensome regulations that inhibit economic growth. However, this approach faces criticism, especially from Senator Elizabeth Warren, who warns that such changes could increase risks to the economy, particularly in light of recent financial instabilities.

WASHINGTON (AP) — U.S. Treasury Secretary Scott Bessent is proposing to overhaul a regulatory panel that monitors the nation’s financial stability, advocating for a reduction in regulations.

The Financial Stability Oversight Council (FSOC), established following the 2008 financial crisis, is tasked with overseeing the financial system and assessing risk. In a letter released by Bessent, he argued that past actions aimed at safeguarding the financial system often resulted in 'burdensome and duplicative regulations.'

“Our administration is changing that approach,” stated Bessent, who also chairs the FSOC and was set to meet on Thursday.

As part of the proposed changes, the council will review aspects of the U.S. financial regulatory framework to identify areas where regulations may be unnecessarily burdensome and detrimental to economic growth.

Members of the FSOC include high-ranking officials from various financial regulatory bodies, including the Federal Reserve Board and the Securities and Exchange Commission.

Critics of the proposal have already raised alarm. Senator Elizabeth Warren (D-Mass.) has condemned the idea of loosening regulations, stating that it would put the financial system and overall economy at greater risk. She pointed out that recent bankruptcies in the financial sector highlight the need for robust regulatory measures.

Established in 2010 under the Dodd-Frank Act, the FSOC was created to prevent economic downturns similar to those experienced during the 2008 crisis. As Bessent's proposals move forward, the debate continues over the balance between regulation and economic growth.