Wagner Introduces Legislation to Reform the SEC’s Rulemaking Process

Washington, D.C. – Congresswoman Ann Wagner (R-MO), Chair of the Financial Services Subcommittee on Capital Markets, released the following statement after introducing three bills to improve the SEC’s rulemaking process and enhance accountability within the Commission:

“As Chair of the Financial Services Subcommittee on Capital Markets, I have held multiple hearings this Congress where I examined the Securities and Exchange Commission’s rulemaking process. During those hearings, we heard from expert witnesses on issues within the SEC that include ineffective information technology programs, inadequate cost benefit analysis, and an overall lack of accountability.  The Biden Administration’s SEC has a long record of imposing a top-down, my way or the highway regulatory process on investors, making it much more difficult for retail investors to save for their future. Today I am proud to announce the introduction of three bills that will help address our many concerns with the SEC’s onerous rulemaking processes.”
 

Background

HR 8239, the SEC Regulatory Accountability Act, to require the SEC to consider specified factors before issuing regulations. This includes identifying and addressing the nature and source of the problem, adopting regulations based on a reasoned determination of benefits justifying costs, assessing alternatives, and ensuring regulations are accessible and consistent. Additionally, when adopting or amending major rules, the SEC must state purposes, economic impact metrics, assessment plans, and potential unintended consequences.

HR 8241, the SEC Transparency Act, to require the semi-annual testimony of the Chairman of the SEC before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, with testimony on at least one instance to include the testimony of the entire Commission.

HR 8240, the SEC Cybersecurity Act, to require a study and report to Congress on the SEC’s information technology infrastructure and handling of data.