February 05, 2026

Chairman Scott, Treasury Secretary Bessent Discuss Affordability at Annual Report Hearing

Washington, D.C. – Senate Banking Committee Chairman Tim Scott today delivered the following remarks at the Financial Stability Oversight Council’s (FSOC) Annual Report to Congress, where he emphasized the importance of financial stability and its role in making 2026 the year of affordability.

During his remarks, Chairman Scott underscored the necessity for FSOC to balance systemic risk oversight with the need for economic growth, innovation, and affordability. He commended Treasury Secretary Bessent for FSOC’s work in identifying and appropriately responding to systemic risk in financial markets, as well as highlighted Treasury’s work in implementing the GENIUS Act.

Chairman Scott’s opening remarks as delivered:

As Chairman of the Senate Banking Committee, I am committed to enacting pro-growth and pro-affordability policies.

From the GENIUS Act to the ROAD to Housing Act, I am proud of the bipartisan work this committee has done to promote economic growth and affordability.

As we build on that progress, it’s important to remember that affordability is not an abstract concept. It’s about whether families can afford a home, save for the future, and feel confident that hard work still pays off in America.

Today, I want to focus on the gains we have made in affordability, growth, and how they fit together with financial stability.

For many Americans, including families and small businesses at home in South Carolina, one of the fastest-growing states, I might add, in the country, these issues are not hypothetical.

They shape everyday decisions about work, housing, and opportunity.

Secretary Bessent, as you pointed out in your FSOC’s 2025 report, economic growth and economic security are critical to financial stability.

As a fellow Charlestonian, fellow South Carolinian, you understand firsthand how economic growth, population growth, and opportunity intersect at the community level.

FSOC was created to identify and respond to systemic risk.

But for far too long, FSOC has focused on a climate agenda that damaged financial stability and, as you pointed out, Secretary Bessent, treated nearly every single sector of the economy, financial market, and major financial institution as a potential financial stability vulnerability.

Under your leadership, FSOC has rightly recognized that long-term economic growth and economic security are core components of financial stability.

A system that slows growth, limits opportunity, or prices families out of basic financial services is not a stable system – it’s a fragile one.

Thank you for refocusing FSOC on household balance sheets and household financial resilience.

When families have savings, access to affordable credit, and confidence in their financial future, they are better equipped to weather storms and economic shocks, and the system becomes more resilient. Strong households also strengthen local communities, and strong communities contribute to a more resilient national economy.

That’s why I’m interested in how FSOC balances systemic risk and its oversight with the need for economic growth, innovation, and affordability.

Reassessing bank regulatory and supervisory frameworks to remove undue burdens isn’t about weakening safeguards – it’s about making sure the financial system works as intended for the people it serves.

Coordination matters too.

Businesses should not be caught in the crossfire of conflicting rules, duplicative supervision, or regulatory whiplash.

When regulators fail to coordinate, the consequences don’t stay in Washington – they show up in higher costs, fewer choices, and less access at the kitchen table.

Finally, I want to recognize Treasury’s work implementing the GENIUS Act.

This framework has the potential to expand dollar dominance, increase global demand for dollar-denominated assets like U.S. Treasuries, reduce systemic risk, and support economic growth and innovation.

At the end of the day, affordability, growth, and financial stability must move forward together.

For families and small businesses across the country, including back home in South Carolina, that means an economy that is growing, a financial system that is resilient, and policies that keep opportunity within reach.

I am confident that our economy will continue to grow and our financial system will remain resilient.

Thank you, Mr. Secretary, for being here, and I look forward to your testimony.