HR 3682 United States House · 119th Congress

Financial Stability Oversight Council Improvement Act of 2025

This bill amends the process for the Financial Stability Oversight Council (FSOC) when considering actions against U.S. nonbank financial companies. It requires the FSOC to first determine that alternative solutions - such as new regulatory standards, agency actions, or a company's written plan - are not possible or insufficient to protect financial stability before voting on a formal determination. The change directly affects the FSOC and large nonbank financial companies that could face regulatory scrutiny. The key provision adds a new step to ensure the Council explores other options before taking significant action. (Procedural bill; summary limited to 3 sentences as specified.)

Bill status passed 3 of 5 stages cleared

Introduction

Jun 2025

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

President

Introduced Jun 3, 2025 Last action Feb 11, 2026

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What changed between versions

Introduced in House → Engrossed in House · 1 edit · Feb 9, 2026

MINOR

The bill narrows the standard the Financial Stability Oversight Council (FSOC) must meet before voting to designate a nonbank financial company as a systemic risk. The original language allowed designation based on any threat the company 'could pose' to financial stability, while the amended version requires the Council to specifically identify that the threat stems from either material financial distress at the company or from its structural characteristics (size, scale, concentration, interconnectedness, or mix of activities). This makes it harder for FSOC to designate nonbank firms by requiring a more specific justification.

REQUIREMENT

The threshold for FSOC to vote on designating a nonbank financial company as a systemic risk is narrowed. Previously, the Council only needed to find that alternative actions were insufficient to mitigate 'the threat that the company could pose' to financial stability. Now the Council must specifically determine that the threat relates to either (1) material financial distress at the company, or (2) the nature, scope, size, scale, concentration, interconnectedness, or mix of activities of the company. This adds a more specific analytical requirement before designation can proceed.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 11, 2026

Committee

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

upper

Feb 9, 2026

Introduced

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2074)

lower

Feb 9, 2026

Lower · Passed

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2074)

lower

Feb 9, 2026

Introduced

Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.

lower

Nov 4, 2025

Lower · Passed

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-364.

lower

Sep 16, 2025

Introduced

Ordered to be Reported (Amended) by the Yeas and Nays: 47 - 4.

lower

Sep 16, 2025

Lower · Passed

Committee Consideration and Mark-up Session Held

lower

Jun 3, 2025

Committee

Referred to the House Committee on Financial Services.

lower

Jun 3, 2025

Introduced

Introduced in House

lower

1 primary · 20 co-sponsors