Bessent Accelerates Regulation Overhaul to Jumpstart Growth

Treasury Secretary Announces Reforms to the Financial Stability Oversight Council

In a decisive step to curb what officials label as “overregulation,” Treasury Secretary Janet Yellen unveiled a comprehensive set of changes to the Financial Stability Oversight Council (FSOC) on Thursday.

The revamped framework is intended to streamline the council’s review processes, eliminate duplicative reporting requirements, and provide clearer compliance guidance for financial institutions. By doing so, the administration aims to create a more dynamic environment for investment and job creation.

“Our objective is to modernize the regulatory architecture without compromising the safety and soundness of the financial system,” Yellen said at a press briefing. “We can achieve robust growth while still protecting consumers and investors.”

The key components of the reform package include:

• Consolidating overlapping supervisory functions into a single, unified review board.
• Introducing a “fast‑track” approval pathway for fintech innovations that meet baseline risk standards.
• Requiring periodic impact assessments to ensure regulatory burdens remain proportionate to systemic risk.

Industry leaders have welcomed the initiative, calling it a “necessary step” toward restoring confidence in the U.S. financial market. Critics, however, caution that loosening oversight could expose the system to new vulnerabilities if not carefully monitored.

The Treasury Department will release detailed guidance over the next 60 days, with a timeline that aims to have the revised FSOC structure fully operational by the end of the fiscal year.