Expanded regulatory authority proposed by Treasury, according to Bessent
In January 2025, Scott Bessent was appointed as the Treasury Secretary under President Donald Trump's administration. Since then, Bessent has been tasked with shaping the financial regulatory landscape.
One of the key areas of focus under Bessent's leadership is the promotion of digital finance innovation. The administration has shown a clear push towards supporting blockchain and cryptocurrencies, aiming to position the United States as a global leader in the crypto industry. This push includes ending regulatory hostility towards digital assets and positioning the U.S. as a hub for crypto innovation.
However, the publicly available search results do not provide detailed, specific information on financial regulatory reforms proposed by Treasury Secretary Bessent, specifically targeting regulatory tailoring, supervision, capital requirements, liquidity, or anti-money laundering/countering the financing of terrorism (AML/CFT) as of August 2025.
What is known is that Bessent has expressed concerns about leverage capital restrictions being too frequently binding. He also plans to reassess the cost benefits of the liquidity framework and the shift to safe assets, which may impact loan availability.
Moreover, Bessent has shown a concern for community banks being unduly burdened by compliance requirements and plans to push for more tailored regulation for these banks. He also advocates for the U.S. to conduct its own analysis for determining the right framework for revamping capital requirements, rather than outsourcing to international bodies like the Basel committee.
Bessent's focus also includes ensuring smaller, community banks matter more in bank regulation. He believes that policy is personnel, and he has a capable team for implementing changes.
The Financial Stability Oversight Council and the President's Working Group on Financial Markets are potential forums for the Treasury's greater role in financial regulation. The Treasury also plans to improve exam procedures, bolster its monitoring of examiners' compliance, and implement more realistic processes for banks to appeal supervisory findings.
Regulators will revisit the role of the discount window and federal home loan banks in internal liquidity stress testing and bank contingency funding plans. The Treasury also plans to refocus bank supervision on material financial risk and drive a change in the culture of supervision.
In terms of AML/CFT, Bessent plans to advocate for changes to these rules, focusing on national security priorities and higher-risk areas. He also seeks to review regulatory impediments to blockchain, stablecoin, and new payment systems.
Bessent's focus on crypto, blockchain, and fintech friendly policies, along with new savings vehicles like "Trump accounts," is clear. However, the specific proposed reforms or changes targeting regulatory tailoring, supervision, capital requirements, liquidity, or AML/CFT regulations in traditional finance sectors remain unclear as of August 2025.
If you seek more granular details on these regulatory areas, it may require reviewing official Treasury or regulatory agency releases, congressional proposals, or detailed policy statements not captured in the summarized search results.
