U.S. Department of the Treasury convenes FSOC meeting focusing on bank supervision, digital assets, CRE and private credit

The U.S. Department of the Treasury published a readout of the Financial Stability Oversight Council’s executive-session meeting chaired by Treasury Secretary Scott Bessent, covering updates from the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency on efforts to enhance supervisory and regulatory frameworks and focus bank supervision on material financial risks. The Council also received briefings on digital asset markets, including Treasury staff updates on the President’s Working Group on Digital Asset Markets and agency updates from the Securities and Exchange Commission and the acting Commodity Futures Trading Commission chair, focused on regulatory clarity and certainty for digital asset markets. Separate presentations covered commercial real estate conditions, noting stabilization across sectors with continued headwinds in office and multifamily, and recent supervisory actions to mitigate CRE risks at regulated institutions. A further update on corporate credit market developments highlighted continued growth in private credit, solid corporate fundamentals, and higher exposure among lower-rated and more highly leveraged firms with a greater share of floating-rate liabilities; members discussed potential benefits of private credit alongside vulnerabilities warranting continued monitoring. The Council approved the minutes of its March 20, 2025 meeting.