West STL News

Congresswoman Ann Wagner (R-MO), Chair of the Financial Services Subcommittee on Capital Markets, has introduced three bills aimed at reforming the Securities and Exchange Commission's (SEC) rulemaking process. Wagner made this announcement in a statement where she voiced concerns about the SEC's current practices.

“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," said Wagner. "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.”

The first bill, HR 8239 or the SEC Regulatory Accountability Act, requires the SEC to consider specified factors before issuing regulations. These include identifying and addressing problems' nature and source, adopting regulations based on a reasoned determination of benefits justifying costs, assessing alternatives, and ensuring regulations are accessible and consistent. Moreover, when adopting or amending major rules, the SEC must state purposes, economic impact metrics, assessment plans, and potential unintended consequences.

The second bill is HR 8241 or the SEC Transparency Act. This legislation requires semi-annual testimony from the Chairman of the SEC before both House Committee on Financial Services and Senate Committee on Banking, Housing, and Urban Affairs. At least one instance should include testimony from all members of the Commission.

Lastly is HR 8240 or the SEC Cybersecurity Act which mandates a study and report to Congress regarding how well equipped is SEC's information technology infrastructure for handling data.