Sponsors (19)
The bill strengthens preparedness, coordination, and public transparency about financial risks from a Taiwan contingency—at the cost of ongoing taxpayer-funded regulatory infrastructure and the risk of interventions or precautionary measures that could constrain markets and investment.
Financial regulators and financial institutions will receive regular, coordinated analysis and recommendations about vulnerabilities from potential Chinese military action, improving preparedness and reducing systemic risk to U.S. markets.
Market participants (market makers, asset managers, exchanges) will have a formal channel to communicate risks and to test market-stability tools (e.g., circuit breakers), which can improve operational readiness and reduce the chance of disorderly markets during crises.
Taxpayers and investors will gain public reporting that increases transparency about systemic risks and estimated economic costs of a Taiwan contingency, giving policymakers and the public better information for decisions.
Financial institutions, small-business owners, and investors could face regulatory interventions during crises (e.g., trading limits or coordinated actions) that constrain market activity and liquidity, potentially worsening economic disruption.
Middle-class families and small-business owners could experience reduced investment opportunities or capital flows if required contingency planning and cost estimates prompt precautionary market measures (such as de-listings or reduced cross-border investment).
Taxpayers will bear ongoing costs to establish, staff, and maintain a permanent advisory committee and the associated reporting and coordination requirements, increasing government spending.
Based on analysis of 2 sections of legislative text.
Creates a permanent Financial Stability Oversight Council (FSOC) advisory committee to study and prepare for market and economic risks stemming from Chinese military aggression toward Taiwan. The committee will include agency designees and private-market participants, meet at least twice yearly, produce an annual study with recommendations, and prompt an annual FSOC public report analyzing vulnerabilities and proposed regulatory or government responses.
Introduced May 5, 2025 by Zach Nunn · Last progress May 5, 2025