II 

118TH CONGRESS 

2D SESSION S. 3601 

To amend the Financial Stability Act of 2010 to require the Financial 

Stability Oversight Council to consider alternative approaches before determining that a U.S. nonbank financial company shall be supervised 

by the Board of Governors of the Federal Reserve System, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 17, 2024 

Mr. ROUNDS (for himself and Ms. SINEMA) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Financial Stability Act of 2010 to require 

the Financial Stability Oversight Council to consider alternative approaches before determining that a U.S. 

nonbank financial company shall be supervised by the 

Board of Governors of the Federal Reserve System, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Stability 

5 Oversight Council Improvement Act of 2024’’. 


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•S 3601 IS

1 SEC. 2. FINANCIAL STABILITY OVERSIGHT COUNCIL. 

2 (a) IN GENERAL.—Section 113 of the Financial Sta3 bility Act of 2010 (12 U.S.C. 5323) is amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (1), by striking ‘‘The 

6 Council’’ and inserting ‘‘Subject to paragraph 

7 (3), the Council’’; and 

8 (B) by adding at the end the following: 

9 ‘‘(3) INITIAL DETERMINATION.—The Council 

10 may not vote on a proposed determination with re11 spect to a U.S. nonbank financial company under 

12 paragraph (1) unless the Council first determines, in 

13 consultation with the company and the primary fi14 nancial regulatory agency with respect to the com15 pany, that a different action by the Council or the 

16 agency (including the application of new or height17 ened standards and safeguards under section 120), 

18 or by the company under a written plan that is sub19 mitted promptly to the Council, is impracticable or 

20 insufficient to mitigate the threat that the company 

21 could pose to the financial stability of the United 

22 States.’’; and 

23 (2) in subsection (f)(1), by striking ‘‘subsection 

24 (e)’’ and inserting ‘‘subsections (a)(3) and (e)’’. 


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•S 3601 IS

1 (b) ADDITIONAL DUTIES.—Section 112(a)(2) of the 

2 Financial Stability Act of 2010 (12 U.S.C. 5322(a)(2)) 

3 is amended— 

4 (1) in subparagraph (M)(ii), by striking ‘‘and’’ 

5 at the end; 

6 (2) in subparagraph (N)(vi)(III), by striking 

7 the period at the end and inserting a semicolon; and 

8 (3) by adding at the end the following: 

9 ‘‘(O) not later than 180 days after the 

10 date of enactment of this subparagraph, and 

11 once every 360 days thereafter, submit to the 

12 Committee on Banking, Housing, and Urban 

13 Affairs of the Senate and the Committee on Fi14 nancial Services of the House of Representa15 tives a report that— 

16 ‘‘(i) identifies— 

17 ‘‘(I) the planning materials relat18 ing to a threat to the financial sta19 bility of the United States that are 

20 available for collection by, and dis21 semination to, member agencies; and 

22 ‘‘(II) the potential gaps in plan23 ning activities with respect to a threat 

24 to the financial stability of the United 


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•S 3601 IS

1 States and the threats posed by those 

2 gaps; and 

3 ‘‘(ii) includes— 

4 ‘‘(I) steps taken by the Council 

5 to plan for a crisis with respect to the 

6 financial stability of the United 

7 States, which shall be consistent with 

8 discussions by member agencies; and 

9 ‘‘(II) a review of financial activi10 ties, products, and practices; and 

11 ‘‘(P) after any closed meeting of the Coun12 cil, publicly release detailed minutes of that 

13 meeting.’’. 

Æ 


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