U.S. Treasury Secretary Bessant will push for looser financial regulations and recommend changes to the FSOC's working principles.

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)