FTA Supports Bipartisan Legislation to Improve FSOC Designation Process
WASHINGTON, D.C. – Today, the Financial Technology Association joined a coalition of financial services trade associations in supporting H.R. 3682, the Financial Stability Oversight Council Improvement Act of 2025. The bipartisan legislation, sponsored by Rep. Bill Foster (D-IL) and Rep. Bill Huizenga (R-MI), passed the House Financial Services Committee on a 47-4 bipartisan vote.
H.R. 3682 would bring needed stability and transparency to FSOC’s approach to designating nonbank financial companies as Systemically Important Financial Institutions (SIFIs). The bill ensures that FSOC considers the full range of tools at its disposal, including direct consultations with companies and their primary regulators, before proposing to designate a company for heightened prudential regulation and supervision by the Federal Reserve Board.
The coalition supports an activities-based approach to systemic risk that addresses specific financial activities system-wide, rather than focusing on any one company. This approach recognizes that a nonbank financial company’s primary regulator is best positioned to identify regulatory gaps and develop consistent, predictable rules.
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.
FTA Supports Bipartisan Legislation to Improve FSOC Designation Process
WASHINGTON, D.C. – Today, the Financial Technology Association joined a coalition of financial services trade associations in supporting H.R. 3682, the Financial Stability Oversight Council Improvement Act of 2025. The bipartisan legislation, sponsored by Rep. Bill Foster (D-IL) and Rep. Bill Huizenga (R-MI), passed the House Financial Services Committee on a 47-4 bipartisan vote.
H.R. 3682 would bring needed stability and transparency to FSOC’s approach to designating nonbank financial companies as Systemically Important Financial Institutions (SIFIs). The bill ensures that FSOC considers the full range of tools at its disposal, including direct consultations with companies and their primary regulators, before proposing to designate a company for heightened prudential regulation and supervision by the Federal Reserve Board.
The coalition supports an activities-based approach to systemic risk that addresses specific financial activities system-wide, rather than focusing on any one company. This approach recognizes that a nonbank financial company’s primary regulator is best positioned to identify regulatory gaps and develop consistent, predictable rules.
Read the full letter here.
ABOUT US
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.