Treasury Secretary Scott Bessent is advocating for a reform of the Financial Stability Oversight Council (FSOC), which was established by the Dodd-Frank Act to identify and mitigate systemic financial risks. He argues that current regulations are overly burdensome and duplicative, suggesting a need for a more flexible approach. Critics, including Sen. Elizabeth Warren and financial reform advocates, warn that loosening these regulations could compromise safeguards as financial risks rise, particularly with concerns about AI stock bubbles. The Treasury Department and White House have not commented on this proposal.
