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Banking committee chairman urges FSOC to weigh growth and affordability in oversight
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Summary
The chairman of the Senate Committee on Banking, Housing, and Urban Affairs opened the hearing by urging the Financial Stability Oversight Council to balance systemic-risk work with economic growth and household affordability and lauded Treasury’s implementation of the 'Genius Act.'
The Senate Committee on Banking, Housing, and Urban Affairs opened its hearing with the committee’s chairman pressing financial regulators to balance systemic‑risk oversight with policies that support economic growth and household affordability.
"Affordability is not an abstract concept," the chairman said, adding that for many Americans it means being able to "afford a home, save for the future, and feel confident that hard work still pays off in America." He framed the committee’s focus as how gains in affordability and growth fit together with financial stability.
Speaking directly to Treasury leadership, the chairman referenced Secretary Bessette’s 2025 report and thanked him for highlighting the link between economic growth, economic security and financial stability. "As a fellow Charlestonian, fellow South Carolinian, you understand firsthand how economic growth, population growth, and opportunity intersect at the community level," the chairman said.
The chairman criticized the Financial Stability Oversight Council (FSOC), saying the council had "for far too long ... focused on a climate agenda that damaged financial stability" by treating broad sectors and major institutions as potential vulnerabilities. He said FSOC under current leadership has "rightly recognized" the importance of long‑term growth and household resilience to overall stability.
Arguing for regulatory recalibration, the chairman said reassessing bank regulatory and supervisory frameworks to remove "undue burdens" is intended to ensure the financial system "works as intended for the people it serves," not to weaken safeguards. He warned that when regulators fail to coordinate, "the consequences don't stay in Washington. They show up in higher costs, fewer choices, and less access at the kitchen table."
He also praised the Treasury Department’s implementation of the "Genius Act," calling the framework a potential means to "expand dollar dominance, increase global demand for dollar‑denominated assets like U.S. Treasuries, reduce systemic risk and support economic growth and innovation."
The chairman closed by reiterating that affordability, growth and financial stability "must move forward together" for families and small businesses, expressed confidence in continued economic resilience, and thanked Secretary Bessette "for being here," saying he looked forward to the Secretary's testimony.
