February 11, 2026
Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs
To amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to consider alternative approaches before determining that a U.S. nonbank financial company shall be supervised by the Board of Governors of the Federal Reserve System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Financial Stability Oversight Council Improvement Act of 2025
.
Sec. 2. Financial Stability Oversight Council
Section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323) is amended—
(1)
in subsection (a)—
(A)
in paragraph (1), by striking The Council
and inserting Subject to paragraph (3), the Council
; and
(B)
by adding at the end the following:
(3) Initial determination
The Council may not vote on a proposed determination with respect to a U.S. nonbank financial company under paragraph (1) unless the Council first determines, in consultation with the company and the primary financial regulatory agency with respect to the company, that a different action by the Council or the agency (including the application of new or heightened standards and safeguards under section 120), or by the company under a written plan that is submitted promptly to the Council, is impracticable or insufficient to mitigate the threat that material financial distress at the company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the company, could pose to the financial stability of the United States.; and
(2)
in subsection (f)(1), by striking subsection (e)
and inserting subsections (a)(3) and (e)
.