Bessent Accelerates Regulation Overhaul to Jumpstart Growth

New Measures Aim to Reduce “Overregulation” in the Financial Sector

Washington, D.C. — Treasury Secretary Alex Bessent unveiled a sweeping set of reforms to the Financial Stability Oversight Council (FSOC) on Tuesday, targeting what officials describe as “excessive regulatory burdens” that have slowed economic expansion.

The revamped FSOC will shift its focus toward targeted oversight rather than broad, one‑size‑fits‑all rules, giving banks and non‑bank financial institutions greater flexibility to innovate while preserving the core safeguards that protect the financial system from systemic risk.

The reform package includes:

• Reducing the number of mandatory stress‑test scenarios for midsize banks.
• Introducing a faster “opt‑out” procedure for certain reporting requirements.
• Creating a new “Regulatory Impact Unit” within the Treasury to assess the cost‑benefit of future rules.

Industry leaders have welcomed the move, calling it “a breath of fresh air” that could spur investment and job creation. Critics, however, caution that loosening oversight might increase the likelihood of another financial crisis if not carefully monitored.

Secretary Bessent stressed that the overhaul does not mean abandoning consumer protections. “We are tightening the focus on real systemic threats while trimming the red tape that stifles growth,” he said. “Our goal is a resilient, dynamic financial system that supports American families and businesses.”

The Treasury plans to roll out the new framework over the next six months, with a formal review slated for early next year to gauge its impact on both stability and economic performance.