House Passes SEC Regulation Accountability Legislation

Washington, May 17, 2013 -

When formulating federal regulations, it is imperative that federal agencies take into account whether the benefits of the new rules will outweigh the costs.  I was pleased when President Obama issued an executive order over two years ago directing executive branch agencies to conduct cost-benefit analyses on proposed regulations and analyze current rules to judge their effectiveness. Unfortunately, the Securities and Exchange Commission (SEC) – whose rules can have a major impact on job creation and our economy – is not currently subject to the President’s Executive Order.

This week, I supported legislation passed by the House that would require the SEC to perform cost-benefit analyses of proposed regulations. This common sense legislation would also direct the agency to identify and assess possible alternatives to proposed regulations, make efforts to minimize implementation burdens of new regulations, and review current regulations to determine if they remain effective and necessary.  These simple measures will help ensure that the SEC fulfills its mission to ensure appropriate regulations are in place to protect American investors and, as a result, will promote innovation and increase economic growth and job creation.

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