US HB3682

Amends the Financial Stability Act of 2010 to require the Financial Stability Oversight Council (FSOC) to first consider alternative approaches before voting to designate a U.S. nonbank financial company for Federal Reserve supervision

Requires FSOC to consult with the affected company and its primary financial regulatory agency before making a designation determination

Alternative approaches must be deemed impracticable or insufficient to mitigate systemic risk threats before FSOC can proceed with a designation vote, including options like new or heightened standards under Section 120 or a written plan submitted by the company

Threats to be evaluated include material financial distress at the company and factors such as nature, scope, size, scale, concentration, interconnectedness, or mix of activities that could pose risks to U.S. financial stability

Passed the House of Representatives on February 9, 2026