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Scott Bessent, US treasury secretary, speaks to members of the media outside the White House in Washington, DC, US, (Aaron Schwartz/CNP/Bloomberg via Getty Images)

Treasury Secretary Scott Bessent wants to overhaul a regulatory body put in place to identify threats to the banking system following the 2008 financial crisis.

CNBC reported that Bessent will issue a letter detailing changes to the Financial Stability Oversight Council. The panel is composed of 15 financial regulators led by the treasury secretary.

“The Council will work with and support member agencies in considering whether aspects of the U.S. financial regulatory framework impose undue burdens and negatively impact economic growth, thereby undermining financial stability,” the letter will say, per CNBC.

The Treasury Department did not immediately respond to a request for comment.

The FSOC has usually been inclined to push new regulations, not ease up on them. It aligns with the Trump administration’s hands-off approach to the banking sector, which has been further deregulated this year.

In recent years, the FSOC issued annual reports to Congress on real estate, credit, and more. While it doesn’t issue regulations, the FSOC can apply pressure onto federal regulators to intervene with new rules to prevent risks from spreading in financial markets.

In its latest report issued last year, it warned that credit for commercial real estate was weakening, given the rise in remote work arrangements with more office vacancies as a result.

“Against this backdrop of stable economic growth, the financial sector overall performed well and is supporting credit provision,” the report read. “Nonetheless, financial risks in some areas are elevated.”

Itissued a 2022 report warning that the popularity of cryptocurrencies posed economic risks if there wasn’t sturdier oversight in place.

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