Sponsors (19)
The bill creates a permanent, transparent advisory process to strengthen preparedness and reduce systemic market risk from potential Chinese military action regarding Taiwan, at the cost of recurring taxpayer-funded administration and risks of industry capture or sensitive disclosures that could themselves create harm.
Financial institutions, markets, and investors receive ongoing, coordinated analysis and recommendations to prepare for and limit market disruption from potential Chinese military action affecting Taiwan.
Federal and state regulators (and the public they protect) gain stronger coordination and preparedness that can reduce systemic financial risk and help avoid sudden market shutdowns that would harm savers and retirees.
State governments and the public gain increased transparency because the Council must annually disclose identified vulnerabilities, estimated costs, and proposed regulatory actions.
Taxpayers will incur recurring administrative costs to maintain a permanent advisory committee.
Financial market participants and consumers risk biased recommendations because private market actors (including market makers) have formal roles and could chair the committee, which may prioritize industry interests over consumers.
Financial institutions, taxpayers, and markets could be harmed if public reports disclose sensitive vulnerabilities or cost estimates that trigger market panic or are exploited by adversaries.
Based on analysis of 2 sections of legislative text.
Creates a permanent FSOC advisory committee to study risks from Chinese military aggression toward Taiwan and requires annual reports and recommendations on market vulnerabilities and responses.
Introduced May 5, 2025 by Zach Nunn · Last progress May 5, 2025
Creates a permanent advisory committee inside the Financial Stability Oversight Council (FSOC) to study how Chinese military aggression toward Taiwan could damage U.S. financial markets, develop recommendations, and require an annual public report from FSOC analyzing vulnerabilities and regulators’ proposed responses. The committee must include SEC and CFTC designees plus market experts, meet at least twice a year, hold a public meeting (with national-security portions closed), and produce studies and recommendations each year.