This bill amends the Financial Stability Act of 2010 to revise the process for designating nonbank financial companies for supervision by the Board of Governors of the Federal Reserve System. It mandates that the Financial Stability Oversight Council (FSOC) must first consider and determine that alternative approaches are impracticable or insufficient to mitigate potential threats to U.S. financial stability before voting on such a designation. These required alternative considerations include actions by the Council itself, the application of new or heightened standards by the company's primary financial regulatory agency, or a written plan submitted promptly by the nonbank company. The FSOC must conduct this initial determination in consultation with the company and its primary regulator, ensuring a comprehensive evaluation of less intrusive options before imposing Federal Reserve oversight.