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STATEMENT

FSOC says it will support modernization of bank and credit union supervision with focus on material risks and reduced burdens

True

Evidence from credible sources supports the statement as accurate. Learn more in Methodology.

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Member agencies and supervisory authorities pursue modernization of regulatory and supervisory frameworks to address material risks, enhance transparency, and reduce unnecessary burdens for banks and credit unions, with particular attention to community banks.

Source summary
Treasury Secretary Scott Bessent testified before the Senate Banking Committee on the Financial Stability Oversight Council’s (FSOC) 2025 annual report, saying the council will prioritize economic growth and economic security. He criticized what he called "regulation by reflex," linked that approach to recent bank failures, and outlined four FSOC priorities: strengthening U.S. Treasury market resilience, improving cybersecurity, modernizing bank and credit-union supervision (especially for community banks), and promoting responsible use of artificial intelligence.
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Latest fact check

The Treasury/FSOC materials explicitly state that the Council supports modernizing supervisory and regulatory frameworks for banks and credit unions to focus on material risks, enhance transparency, and reduce unnecessary burdens—particularly for community banks. Secretary Scott Bessent’s Feb. 5, 2026 Senate statement repeats that language verbatim, and the FSOC 2025 Annual Report and its press release make the same recommendations. Verdict: True — the cited FSOC/Treasury documents explicitly endorse those modernization goals and the emphasis on community banks.

Sources

Timeline

  1. Update · Feb 05, 2026, 11:55 PMTrue
    The Treasury/FSOC materials explicitly state that the Council supports modernizing supervisory and regulatory frameworks for banks and credit unions to focus on material risks, enhance transparency, and reduce unnecessary burdens—particularly for community banks. Secretary Scott Bessent’s Feb. 5, 2026 Senate statement repeats that language verbatim, and the FSOC 2025 Annual Report and its press release make the same recommendations. Verdict: True — the cited FSOC/Treasury documents explicitly endorse those modernization goals and the emphasis on community banks.
  2. Original article · Feb 05, 2026
    View article
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