Financial Stability Oversight Council Improvement Act of 2025

This section would let the Act be called the 'Financial Stability Oversight Council Improvement Act of 2025.'

This section would amend Section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323), which governs the Financial Stability Oversight Council's authority to determine that a U.S. nonbank financial company must be supervised by the Board of Governors of the Federal Reserve System. It would add a new requirement that applies before the Council can vote on such a determination: the Council would first have to determine, in consultation with the company and the company's primary financial regulatory agency, that a different action is impracticable or insufficient to mitigate the threat the company could pose to the financial stability of the United States. That different action could be action by the Council or the agency, including applying new or heightened standards and safeguards under section 120 of the Act, or action by the company itself under a written plan that the company promptly submits to the Council. Only after making that determination could the Council proceed to vote on a proposed determination that the company must be supervised by the Federal Reserve. The section would also extend a related procedural provision in subsection (f)(1) of Section 113, which currently applies in connection with subsection (e), so that it applies in connection with this new requirement as well.