Is U.S. financial regulation about to shift? Bessent plans to "loosen" FSOC

Question

【Blockchain Rytm】On December 11th, a noteworthy signal was sent — US Treasury Secretary Yellen is preparing for a major shift in financial regulation.

She is targeting the Financial Stability Oversight Council (FSOC), the “gatekeeper” established after the 2008 financial crisis. Yellen plans to change the council’s approach from previous “tightening regulation” to “relaxing controls.”

In a letter on Thursday, she stated: The council will work with its member agencies to consider whether the current financial regulatory framework is too restrictive. Could it possibly hinder economic growth and impact financial stability? The implication is to loosen market restrictions.

More interestingly, Yellen also plans to establish a working group specifically to study AI. On one hand, to see if AI can make the financial system more resilient; on the other hand, to monitor whether AI might create new risks.

This shift is significant. It’s important to note that FSOC has been increasing regulation over the past decade, and suddenly turning toward a more relaxed stance could have uncertain impacts on the entire financial system.

GasFeePhobia · Accepted Answer

Easing restrictions? Is the crypto world about to take off? Finally, someone sees through the pitfalls of overregulation.

Besent's move has given Crypto investors a reassuring boost.

Regulation needs to loosen a bit for the market to breathe truly; otherwise, it’s just chronic suffocation.

If AI risk control is done well, the financial system can indeed become more stable, but the prerequisite is to prevent hacking attacks.

Decades of strict policies can be changed at will—has Washington finally woken up?

It feels like a signal that future policy levels may become more friendly toward digital assets.

GasDevourer · Answer

Lifting restrictions? The brothers on the chain might be happy about this, but I have a hard time believing this explanation...

Speaking of AI, we really need to keep a close eye on it. The financial system might be able to "resist" some shocks, but what if one day AI starts causing trouble on its own?

Besent's move... is just trying to empower institutions, using economic growth as a smooth excuse.

Wait a minute, isn't this tailored specifically for some big players? Once regulations loosen, the first to benefit will still be those big fish.

BitcoinDaddy · Answer

Liberalization? Things might really be turning interesting now, is the American financial circle about to change?

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Going back to AI research again, it feels like using new tools to solve old problems—are they helpers or new pitfalls?

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Relaxing restrictions on the market sounds good, but I just want to know what to do in the next crisis...

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Wow, Bessent really played hard this time. FSOC's chains from over a decade ago can be broken off just like that.

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AI empowering the financial system? I don't quite understand this logic; better to clarify the risks first.

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Finally changing the approach. The previous regulatory framework was indeed a bit suffocating.

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Switching to easing? Whether the market can rally or not depends on this.

BridgeJumper · Answer

Finally, someone is about to touch the FSOC issue. The framework from 2008 has long needed an overhaul; it's far too rigid.

Easing regulations is one thing, but how to supervise AI is the real headache...

Bescent's move this time is probably giving the crypto community a bit of hope, although it may not be directly related.

Is this a sign of loosening the reins? Are the economic data really this bad?

The excuse that overly strict regulation hampers growth has been heard too many times. Who actually benefits from it is still very clear.

MissingSats · Answer

Loosening restrictions? Well, here we go again, about to start flooding the market. History always repeats itself; this time, who will foot the bill?

GateUser-afe07a92 · Answer

Liberalization? Is this for real this time... I haven't forgotten the lesson from 2008, and now they're playing with fire again?

Wait, AI is actually quite interesting. Combining AI with the financial system—if this combination goes wrong, who can handle the consequences?

Regulation being too strict is indeed annoying, but completely letting go might not be very realistic... Finding the right balance in the middle is a problem.

This signal is quite decisive, are they really going to make changes or is it just talk? It depends on how they proceed next.

Bessent's move is quite bold; reversing over a decade of regulatory thinking is no small matter.

GmGmNoGn · Answer

Liberalization? Now finally someone dares to tell the truth. The previous regulatory framework indeed stifled innovation.

I'm curious to see what tricks AI risk control can play, but hopefully it won't create new pitfalls again.

Does Bessent's move signal a crypto-friendly stance?

Wait, is this just a prelude to another round of rug pulls? History always repeats itself.

Has FSOC been useless all these years? Seems like it’s of no real use.

This is the real way to support innovation, much more reliable than those who shout about risk every day.

Liberalization is one thing, but why does it feel like the risks have increased?

Finally, someone understands that the market needs to breathe. Honestly, the previous framework was too medieval.

GateUser-75ee51e7 · Answer

Loosening restrictions? You're just paving the way for yourself here. When things go wrong, taxpayers will have to foot the bill again.

fomo_fighter · Answer

Loosening restrictions? This is getting interesting, reversing the tight control from 2008... But I'm more interested in AI; can the financial system really keep up with the speed of AI?