Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Financial Stability Oversight Council related to "Guidance on Nonbank Financial Company Determinations".

H.J.Res. 120 is a joint resolution that would overturn a 2023 rule issued by the Financial Stability Oversight Council (FSOC) regarding the regulation of large nonbank financial institutions, such as hedge funds or insurance companies. The rule in question makes it easier for the government to designate these companies as "systemically important," which places them under the direct supervision of the Federal Reserve and subjects them to stricter federal oversight. By nullifying this rule, the resolution would restore a previous process that required the government to prioritize working with existing regulators and conduct more extensive cost-benefit analyses before imposing these stricter federal standards. For citizens, the bill represents a debate over whether more aggressive federal oversight is necessary to prevent a financial crisis or if such regulations unnecessarily increase costs and limit the services provided by nonbank financial firms.