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U.S. Treasury Secretary "Scott Pisent" proposed significant reforms aimed at shifting the approach of the "Financial Stability Oversight Council" (FSOC) from regulatory tightening to a more flexible environment to support economic growth.
The Secretary stated that the Council will work with its member agencies to review whether parts of the financial regulatory framework impose unnecessary burdens and hinder growth, which could undermine financial stability in the long term. The plan also includes forming a working group to explore how artificial intelligence can be used to enhance the resilience of the financial system, while tracking potential risks that may arise from it.
This proposal comes as Pisent serves as Chair of the Council, which was established after the financial crisis of 2008 to monitor systemic risks. This represents a shift from the previous traditional approach of the Council.