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As first reported in Fox Business, U.S. Representatives Young Kim (CA-39), French Hill (AR-02) and Bill Huizenga (MI-02) introduced the Review the Expansion of Government (REG) Act (H.R. 9526) to establish a regulatory review process at the Securities and Exchange Commission (SEC) to verify rules are working as intended.
The SEC in the past year alone has proposed 33 major new rules, nearly triple the average since 2012. Additionally, the SEC’s Acting Inspector General left office less than two months after his October 2022 report criticizing SEC Chairman Gary Gensler’s rushed approach to rulemaking, saying it lacked input from senior managers at the agency, jeopardized agency workers’ health and limited time for public comment.
The REG Act would require the SEC to:
- Review every final rule up to 3 years after implementation,
- Create a plan on how to carry out this review; and,
- Report to Congress identifying each action or review the SEC failed to review and explaining why the agency failed to do so.
“Recent events have made clear that the SEC’s current regulatory approach raises compliance costs for small businesses, investors and entrepreneurs,” said Rep. Kim.“The REG Act will establish needed Congressional oversight over the SEC and ensures its rules are modernized, not burdening small businesses, and are working as intended. I’ll keep fighting for a streamlined, transparent federal government that is accountable to taxpayers.”
“I am pleased to co-lead this legislation with my friend, Congresswoman Young Kim, to prevent regulatory overreach at the Securities and Exchange Commission (SEC). The SEC must follow its three-part mission: to protect investors, facilitate capital formation, and maintain orderly and efficient markets,” said Rep. Hill. “Any rulemaking that does not advance the SEC’s mission should be rescinded, which is why I support strengthening the guardrails around Commission’s rulemaking process.”
“The REG Act is a commonsense piece of legislation designed to rein in bureaucracy and require timely reviews of the SEC’s regulatory process. The REG Act would also improve oversight of the SEC by ensuring the agency maintains its focus on capital formation and investor protection and does not exceed the authority granted to it by Congress. I want to thank Congresswoman Kim for taking a leadership role in holding the SEC accountable,” said Rep. Huizenga.
In October 2022, Rep. Kim and House Small Business Committee Ranking Member Blaine Luetkemeyer (MO-03) wrote to the SEC urging consideration of how regulations may impact small businesses and entrepreneurs.
Read the bill text HERE.
