The legislation would significantly affect how the SEC operates, particularly in its internal governance. By instituting a requirement for a majority vote among commissioners for all rulemakings, enforcement actions, and investigations, the bill promotes a more collaborative decision-making process. The intention behind this amendment is to enhance accountability while also potentially increasing the stability and effectiveness of the Commission amid varying political administrations. Additionally, the introduction of an Executive Director, appointed by the commissioners, aims at improving operational oversight within the SEC.
Summary
House Bill 4019, titled the SEC Stabilization Act of 2023, aims to amend the Securities Exchange Act of 1934 by expanding and restructuring the leadership of the Securities and Exchange Commission (SEC). The bill proposes to increase the number of commissioners from five to six, extending their terms from five to six years. Furthermore, it introduces a staggering term system whereby two commissioners' terms end every two years. This change seeks to ensure that presidential appointments incorporate a bipartisan approach, as any appointments of commissioners whose terms end on the same date cannot come from the same political party.
Contention
While the bill has been positioned as a reform aimed at stabilizing the SEC, it is not without contention. Critics argue that increasing the number of commissioners could dilute accountability and complicate decision-making. There may also be concerns regarding the implications of requiring bipartisan consensus for appointments and actions, which some fear could lead to gridlock within the Commission, particularly during contentious political climates. Advocates for financial reform, however, maintain that such changes are necessary to ensure a balanced and transparent regulatory framework in the financial sector.
Protecting Americans’ Retirement Savings from Politics Act Businesses Over Activists Act Guiding Uniform and Responsible Disclosure Requirements and Information Limits Act of 2023 American FIRST Act of 2023 American Financial Institution Regulatory Sovereignty and Transparency Act of 2023
CFPB Transparency and Accountability Reform Act Transparency in CFPB Cost-Benefit Analysis Act CFPB Dual Mandate and Economic Analysis Act CFPB Whistleblower Incentives and Protection Act Making the CFPB Accountable to Small Businesses Act of 2023 CFPB–IG Reform Act of 2023 Bureau of Consumer Financial Protection-Inspector General Reform Act of 2023 TABS Act of 2023 Taking Account of Bureaucrats’ Spending Act of 2023
Resolution Granting The Claims Commissioner An Extension Of Time To Dispose Of Certain Claims Against The State Pursuant To Chapter 53 Of The General Statutes.