Three new bills have been introduced to reform the Securities and Exchange Commission’s (SEC) rulemaking process. Congresswoman Ann Wagner, the Chairman of the Securities, Claims and Capital Markets Subcommittee, is leading the effort.
The bills primarily address the SEC’s lack of transparency and cybersecurity vulnerabilities.
The first bill, HR 8239, known as the SEC Regulatory Accountability Act, mandates that the SEC consider specificity, costs and benefits, simplicity, and transparency before issuing regulations.
Some crucial factors in this process include identifying and meditating on the real cause of problems, evaluating the economic wear on the rules, and ensuring balance and consistency.
The second act introduced to the SEC is HR 8241, the SEC Transparency Act, which requires the SEC Chairman to appear regularly and semi-annually before the House Financial Service Committee and the Senate Committee on Banking, Housing, and Urban Affairs.
While all can not speak at one hearing, these testimonies must represent the whole Commission.
Finally, HR 8240, the SEC Cybersecurity Act states that the commission will analyze its information system, along with its data management practices, and submit a report to congress.
According to Wagner, these laws will increase the SEC’s transparency and effectiveness.
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