Treasury Secretary Bessent Leads Financial Stability Council Meeting: New Nonbank Oversight Guidance and AI Regulation Strategy

U.S. Treasury Secretary Scott K. H. Bessent chaired a key meeting of the Financial Stability Oversight Council on March 25, 2026, at the Treasury Department in Washington. The U.S. Department of the Treasury press release details how the council held executive and open sessions to review financial stability issues. In the executive session, members received briefings on the councils quarterly financial stability monitor, covering banking sector developments, financial markets, household finances, and financial innovation. Topics included geopolitical risks, artificial intelligence investments, and private credit sector growth. Council members highlighted the financial systems resilience and their monitoring efforts. They also discussed tools to track household financial resilience, consumer credit, and fraud impacts on economic security.

In the open session, the council voted unanimously to publish proposed interpretive guidance on nonbank financial company designations in the Federal Register for 45 days of public comment. This guidance revives elements from the councils 2019 approach, emphasizing an activities-based focus on risks rather than individual firms, while incorporating economic growth and security into risk analysis. It adds a pre-designation off-ramp for companies or regulators to address threats transparently. The council approved minutes from its December 11, 2025, meeting and heard updates from the Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation on banking supervision reforms and simplified regulatory capital standards.

Ahead of the meeting, Senator Jack Reed pressed Bessent in a letter to review emerging cracks in credit markets, particularly private credit from nonbank lenders like private equity firms. Reed warned of hidden leverage and systemic risks that regulators might overlook, urging forward-looking assessments.

Separately, on March 25, biofuel and agriculture groups wrote to Bessent, Agriculture Secretary Brooke Rollins, and Energy Secretary Chris Wright, calling for 45Z clean fuel production tax credit regulations that support farmers.

Treasury also announced conferences on optimizing artificial intelligence regulations for banks and financial institutions. Bessent stated that AI leadership bolsters economic security and that regulation should shift from constraint to supporting productivity growth.

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