Bessant proposed reforms to the Financial Stability Oversight Board and deregulation.

According to Mars Finance, on December 11th, US Treasury Secretary Bessenter proposed a major overhaul of the government's approach to financial regulation and stability. Bessenter 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, Bessenter 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, aims to monitor and address systemic risks, and Bessenter serves as its chairman. This plan marks a shift from the Commission's long-standing bias towards strengthening regulation. Bessenter 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)