Worked to propose a major overhaul of regulatory agencies created during the financial crisis

Treasury Secretary Scott Bessent is proposing a major change in approach to how the government approaches financial regulation and stability, CNBC reported.

Bessent will recommend changes to the Financial Stability Oversight Council’s approach in a letter expected to be released Thursday.

The new approach will shift the agency’s focus on stronger regulation and oversight of regulators, promoting less regulation and a more liberal approach.

“The Board will work with and assist member institutions in considering whether aspects of the U.S. financial regulatory framework impose an undue burden, adversely affect economic growth, and thereby undermine financial stability,” the letter reads.

FSOC was created in the wake of the 2008 financial crisis to monitor and address the types of systemic risks that led to the collapse of major Wall Street financial institutions and plunged the economy into its worst downturn since the Great Depression. The commission was established in 2010 as a result of efforts to prevent a recurrence of such a crisis.

As Secretary of the Treasury, Mr. Bessent will chair the committee. The proposal coincides with an FSOC meeting scheduled for Thursday, where he will submit a letter updating FSOC’s position on the initiative.

The plan is consistent with the Trump administration’s emphasis on deregulation, but it marks a shift from the commission’s long-standing pro-regulatory leanings.

Along with this proposal, Bessent is forming a working group whose mission is to “explore opportunities for[artificial intelligence]to promote resilience in the financial system, while monitoring potential risks to financial stability that may be posed by the introduction of AI.”

Bessent will argue that lowering regulatory barriers and oversight will strengthen the financial system and foster economic growth.