Capital Markets Subcommittee Hearing Examines SEC Agenda

The House Financial Services Committee’s Subcommittee on Capital Markets held a hearing entitled, “Examining the SEC’s Agenda: Unintended Consequences for U.S. Capital Markets and Investors.” The hearing included testimony from Ken Bentsen, President and CEO of SIFMA; Tom Quaadman, Executive Vice-President at the Center for Capital Markets Competitiveness at the U.S. Chamber of Commerce; Dalia Blass, Partner at Sullivan & Cromwell; as well as others. Chairman Ann Wagner (R-MO) argued that regulatory action should only be taken when explicitly authorized by Congress. She said the SEC’s rapid pace of rulemaking raises questions about the ability of the SEC to evaluate the cumulative effects and other implications of the rules. Furthermore, she added the SEC disregards Congressional concern and inquiries which undermines trust in the regulatory process and noted this is evident in bipartisan opposition to the SEC’s approach to swing pricing and conflicts of interest rules. Ranking Member Brad Sherman (D-CA) highlighted the SEC’s impact in regulating crypto and said it is “obvious” that a significant number of investors find environmental, social, and governance (ESG) disclosures material to investments. He stated he thinks that Scope 3 climate disclosures are a problem and emphasized swing pricing is a mistake and is unfair to the middle class.

Click here to read the witnesses’ testimony and view an archived video of the hearing.