U.S. Treasury Secretary Bessenter has proposed significant reforms to the Financial Stability Oversight Council (FSOC), advocating for more relaxed financial regulations. In a letter, Bessenter suggests that the FSOC, which was created post-2008 financial crisis to manage systemic risks, should reassess its regulatory framework to ensure it does not excessively burden economic growth. This proposal marks a departure from the FSOC's traditional focus on stringent regulation. Additionally, Bessenter plans to form a working group to explore the use of artificial intelligence in strengthening the financial system's resilience, while also monitoring the potential risks AI might pose to financial stability. These initiatives reflect a broader shift towards a more liberal regulatory approach under Bessenter's leadership.