Bessent to propose major overhaul of regulatory body created from financial crisis

Treasury Secretary Scott Bessent is proposing a major change in how the government approaches financial regulation and stability, CNBC has learned.

In a letter set to be released Thursday, Bessent will recommend altering the approach of the Financial Stability Oversight Council.

Whereas the agency's focus had been tightening regulations and oversight of the institutions it oversees, the new plan will switch that, and push for looser regulation and a freer approach.

The letter will say, "the Council will work with and support member agencies in considering whether aspects of the U.S. financial regulatory framework impose undue burdens and negatively impact economic growth, thereby undermining financial stability."

FSOC was formed in the wake of the financial crisis of 2008 to monitor an