U.S. Treasury Secretary Scott Bessent speaks onstage during The New York Times DealBook Summit 2025 at Jazz at Lincoln Center on December 03, 2025 in New York City.
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Treasury Secretary Scott Bessent is proposing a major change in the approach to how the government approaches financial regulation and stability, CNBC has learned.
In a letter set to be released Thursday, Bessent will recommend changing the approach of the Financial Stability Oversight Council.
Whereas the agency’s focus had been tightening regulations and oversight of the institutions it oversees, the new approach will switch that, and push for looser regulation and a freer approach.
The letter will say “the Council will work with and support member agencies in considering whether aspects of the U.S. financial regulatory framework impose undue burdens and negatively impact economic growth, thereby undermining financial stability.’
FSOC was formed in the wake of the financial crisis of 2008 to monitor and address the kind of systemic risk that led to the collapse of major Wall Street institutions and sent the economy into its worst slump since the Great Depression.
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