U.S. Department of the Treasury reports Financial Stability Oversight Council unanimously votes to publish proposed revisions to nonbank designation guidance

The U.S. Department of the Treasury released a readout of a Financial Stability Oversight Council meeting chaired by Treasury Secretary Scott K. H. Bessent, where members reviewed the Council’s quarterly financial stability monitor and voted unanimously to publish proposed interpretive guidance updating the Council’s approach to designating nonbank financial companies. In the executive session, Treasury staff briefed members on developments in the banking sector, financial markets, household finances, and financial innovation, including geopolitical risks, the implications of increased investment in artificial intelligence, and recent developments in private credit. The Council also reviewed work on tools to monitor household financial resilience, including consumer credit conditions and analysis of the impact of fraud on households and broader financial stability. In the open session, the Council received updates from the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation on banking supervision and regulatory reforms, including recently issued proposals to simplify and modernize regulatory capital standards, and approved the minutes of its December 11, 2025 meeting. The proposed interpretive guidance will be published in the Federal Register and will be open for public comment for 45 days after publication.