Analyst Brief March 25, 2026

H.R. 3682 — Financial Stability Oversight Council Improvement Act of 2025, as amended

Current Status

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Executive Summary

H.R. 3682 amends the Financial Stability Act of 2010, requiring the Financial Stability Oversight Council (FSOC) to consider alternative approaches before designating a nonbank financial company for supervision by the Federal Reserve. This bill aims to refine the FSOC's regulatory process, potentially reducing burdens on nonbank financial institutions. The bill has been reported with an amendment and committed to the Committee of the Whole House on the State of the Union.

Bill Data

Primary Sponsor

Mr. FOSTER (D-IL)

Bill Number

H. R. 3682

Session

119th

Co-Sponsors

Mr. HUIZENGAMr. GOTTHEIMERMrs. KIMMr. SHERMANMs. PETTERSEN
View on Congress.gov ↗

Arguments For

  • Argument 1: Reduces regulatory burdens on nonbank financial companies, potentially freeing up capital for investment and economic growth.
  • Argument 2: Provides a more flexible and considered approach to financial regulation, potentially avoiding unintended consequences of overly broad designations.
  • Argument 3: Bipartisan support suggests a consensus on the need for regulatory refinement and targeted oversight.

Likely Supporters

None specified

Arguments Against

  • Argument 1: Could weaken financial stability oversight, increasing the risk of future financial crises if nonbank institutions are not adequately supervised.
  • Argument 2: Opponents may argue that the bill creates loopholes for large financial institutions to avoid scrutiny.
  • Argument 3: Implementation challenges in defining and evaluating 'alternative approaches' could lead to delays and legal challenges.

Likely Opponents

None specified

📋 Key Provisions

  • Requires 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.
  • Amends Section 113 of the Financial Stability Act of 2010 to include the new requirements for FSOC determinations.
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Claim Analysis Page 1, Line 2

The bill amends the Financial Stability Act of 2010.

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"To amend the Financial Stability Act"

Claim Analysis Page 1, Line 3

FSOC must consider alternative approaches.

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"consider alternative approaches before de-"

Claim Analysis Page 3, Line 7

The bill amends Section 113 of the Financial Stability Act.

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"Section 113 of the Financial Stability"

Claim Analysis Page 3, Line 15

Council may not vote on a proposed determination.

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"Council may not vote on a"

Claim Analysis Page 3, Line 22

The bill references Section 120.

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"safeguards under section 120), or"