What This Bill Does · Plain English
Summary · Congress.gov
Financial Stability Oversight Council Improvement Act of 2025 This bill requires the Financial Stability Oversight Council, prior to determining that a U.S. nonbank financial company shall be supervised by the Federal Reserve Board and therefore subject to certain prudential standards, to first determine that certain alternative actions would not mitigate the threat the company may pose to U.S. financial stability.
Action Timeline
2025-12-18
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
2025-12-18
Introduced in Senate
Frequently Asked Questions
Did S.3578 pass?
S.3578 is still alive. Current stage: COMMITTEE. Pass likelihood: pending.
What does S.3578 do?
Financial Stability Oversight Council Improvement Act of 2025 This bill requires the Financial Stability Oversight Council, prior to determining that a U.S. nonbank financial company shall be supervised by the Federal Reserve Board and therefore subject to certain prudential standards, to first determine that certain alternative actions would not mitigate the threat the company may pose to U.S. financial stability.
Who sponsored S.3578?
S.3578 was sponsored by Mike Rounds (R-South Dakota).
Full Bill Text
119 S3578 IS: Financial Stability Oversight Council Improvement Act of 2025 U.S. Senate 2025-12-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 1st Session S. 3578 IN THE SENATE OF THE UNITED STATES December 18, 2025 Mr. Rounds (for himself and Mr. Peters ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL 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. 1. Short title This Act may be cited as the Financial Stability Oversight Council Improvement Act of 2025 . 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 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) .
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