S. 3447 — Fortifying United States Markets Against PRC Military Escalation Act of 2025

This section establishes an Advisory Committee on Economic Impacts of Military Escalation by the People's Republic of China toward Taiwan to advise the Financial Stability Oversight Council (FSOC). (As background, the FSOC monitors risks to U.S. financial stability and coordinates among federal financial regulators.) The committee consists of (1) designees of the Securities and Exchange Commission, Commodity Futures Trading Commission, and Board of Governors of the Federal Reserve System; (2) 10 members appointed by the chairperson from nongovernmental capital market participants (e.g., market makers, banks, asset managers, exchanges, institutional investors) and experts on geopolitical risk related to the People's Republic of China; with the Secretary of the Treasury serving as chairperson and one appointed member as private sector lead. The committee must meet in person at least twice per year, with additional meetings at the chairperson's call. Not later than three years after enactment, and every three years thereafter, the committee must (1) study U.S. economic, market, and financial system vulnerabilities to such military escalation, assessing estimated total U.S. economic costs, market impacts and losses, market capacity for volatility, effects on securities of People's Republic of China or Taiwan entities listed on U.S. national securities exchanges, and potential impacts from reductions in People's Republic of China holdings of U.S. Treasury debt; (2) submit recommendations and analysis to the FSOC; (3) brief Congress and the Secretary of State; and (4) hold a public meeting on the recommendations and analysis, omitting national security-sensitive portions. (Thus, the committee facilitates communication among policymakers, agencies, and capital markets to prepare for and mitigate economic strain and volatility from such escalation.)