U.S. Treasury Secretary Bessant suggested changing the FSOC's working principles to promote more relaxed regulation.
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U.S. Treasury Secretary Matt Bessen proposes overhauling FSOC principles to promote relaxed regulation and a liberal approach, shifting from increased regulation bias and establishing an AI working group for financial system resilience.
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Odaily Odaily that U.S. Treasury Secretary Matt Bessen is proposing a major overhaul of the government's approach to financial regulation and stability. Bessen will recommend changes to the working principles of the Financial Stability Oversight Council (FSOC), promoting more relaxed regulation and a more liberal approach. In a letter dated Thursday, Bessen will write, "The Commission will work with its member agencies and support their assessments of whether certain aspects of the financial regulatory framework constitute an excessive burden and negatively impact economic growth, thereby harming financial stability." The FSOC, established after the 2008 financial crisis to monitor and address systemic risks, is chaired by Bessen. This plan marks a shift from the Commission's long-standing bias towards increased regulation. Bessen will also establish a working group to "explore opportunities for AI in enhancing the resilience of the financial system, while monitoring potential risks that AI applications may pose to financial stability." (Jinshi)