U.S. Department of the Treasury sets FSOC priorities on economic growth, economic security and reducing regulatory burdens

The U.S. Department of the Treasury published remarks by Secretary Scott Bessent to the Financial Stability Oversight Council (FSOC) outlining a reoriented approach in the Council’s annual report that puts economic growth and economic security at the center of its financial stability work and signals a shift away from burdensome and duplicative regulation. The remarks frame economic growth as a contributor to stronger earnings and capital buffers for financial institutions and more resilient household and business balance sheets, while arguing that policymakers have not routinely assessed the cumulative burdens and interactions of regulatory and supervisory regimes or the costs of failing to modernize regulations. FSOC will work with member agencies to identify where elements of the U.S. regulatory framework impose undue burdens that harm growth and, in turn, financial stability, using its statutory role to monitor regulatory developments and recommend changes that enhance the integrity, efficiency, competitiveness, and stability of U.S. markets. The annual report is described as moving away from treating nearly every sector, major market, and major financial institution as a vulnerability, and instead focusing on issues most relevant to enduring stability; it also calls for integrating “economic security” into risk analysis, alongside attention to technologies that secure the financial system and regulatory incentives that support credit to strategic sectors. FSOC is operationalizing the priorities through interagency staff working groups, with progress updates to be shared next year. The agenda is also linked to the United States’ 2026 G20 host year, where the Treasury said the main priority will be promoting economic growth and deregulation by removing harmful regulations and barriers to innovation.