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CIVIC HERALD
HR 3682 · 119th Congress · HouseIn committee

Financial Stability Oversight Council Improvement Act of 2025

In plain language: This bill creates extra steps before federal regulators can place major nonbank financial companies—such as large insurance firms, asset managers, or private equity funds—under strict Federal Reserve oversight. Before imposing tighter federal rules and supervision, the Financial Stability Oversight Council must consult with the company and its existing regulators to see if other solutions or a voluntary company plan could fix the risks. Regulators can only move forward with heightened supervision if they conclude that those alternative fixes are impractical or not enough to protect the broader economy.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, issue tags, provisions, stakeholders, summary
People affected—Not determinable from the text provided; the bill applies to large U.S. nonbank financial companies subject to potential FSOC oversight, not individuals.
Fiscal magnitude—no CBO estimate published
Reach33provisional · pending reviewrigor: heuristic llm
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Issues

What this bill touches.

Banking/financial rules−35

The sign shows the bill's direction on each issue (+ toward, − away); the number is its magnitude. Color never encodes good or bad, and never party.

Who it affects

Who it helps · who it burdens.

Who it helps

  • U.S. nonbank financial companiesReceive added procedural protections before potentially facing Federal Reserve supervision, including consultation with the Council and the opportunity to submit a written plan to mitigate financial stability risks instead of being designated (Sec. 2(1)).provisional
  • Primary financial regulatory agencies of nonbank financial companiesMust be consulted by the Financial Stability Oversight Council before the Council can vote to propose designating an entity they regulate for Federal Reserve supervision (Sec. 2(1)).provisional

Who it burdens

  • Financial Stability Oversight Council (FSOC)Takes on a new legal requirement to consult with nonbank financial companies and their primary regulators, and to evaluate alternative regulatory actions or company-submitted plans, before voting on a proposed determination for Federal Reserve supervision (Sec. 2(1), Sec. 2(2)).provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. Prohibits the Financial Stability Oversight Council from voting to subject a nonbank financial company to Federal Reserve supervision unless it consults with the company and its primary regulator and determines that alternative regulatory actions or a company-submitted plan cannot adequately address risks to U.S. financial stability.

    Sec. 2(1)provisional

  2. Allows the Council to waive or modify the requirement to evaluate alternative actions or company plans in emergency situations.

    Sec. 2(2)provisional

How your members of Congress line up

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Timeline

How it moved.

  1. Feb 11, 2026Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  2. Feb 9, 2026Motion to reconsider laid on the table Agreed to without objection.
  3. Feb 9, 2026On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2074)
  4. Feb 9, 2026Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2074)
  5. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-364.
  6. Nov 4, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-364.
  7. Sep 16, 2025Ordered to be Reported (Amended) by the Yeas and Nays: 47 - 4.
  8. Jun 3, 2025Introduced in House
  9. Jun 3, 2025Introduced in House

The original text

Read it for yourself.

Read the original text →

Sources & provenance

Congress.govrefreshed 17 days ago

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