The U.S. Department of the Treasury published remarks by Secretary Scott Bessent to the House Financial Services Committee describing how the Financial Stability Oversight Council’s 2025 annual report reorients the Council’s agenda around economic growth and economic security, with a specific focus on Treasury markets, cybersecurity, regulatory modernization, and artificial intelligence (AI). FSOC’s Treasury market work is framed around supporting member-agency efforts to strengthen market resilience, including through the Inter-Agency Working Group on Treasury Market Surveillance and the Market Resilience Working Group, alongside ongoing monitoring and targeted reforms by individual agencies. On cybersecurity, the Council backs expanded information sharing, joint monitoring and scenario-based exercises, and emphasizes that regulated firms should manage cyber risks linked to third-party service providers. The report also calls for modernizing bank and credit union supervision and regulation to address material risks, enhance transparency, and reduce unnecessary burdens, particularly for community banks, and for the responsible use of AI in coordination with public- and private-sector partners, including international counterparts, while monitoring emerging risks. Treasury also highlighted a revised annual report structure that moves away from treating most major markets and sectors as financial stability vulnerabilities to concentrate on what it views as the most relevant issues.

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