Senate Republicans have introduced new legislation requiring the Securities and Exchange Commission (SEC) Chair to testify before Congress on a semi-annual basis. This proposed measure aims to enhance transparency and accountability by extending oversight provisions initially authorized under the Dodd-Frank Act.
The proposed legislation, named the Empowering Main Street in America Act, was tabled on Tuesday, just hours before the Senate Banking Committee announced a postponement of a hearing scheduled with current SEC Chair Gary Gensler. The postponement followed Gensler’s testimony before the House Financial Services Committee, where he faced bipartisan criticism.
Senate Banking Committee Ranking Member Tim Scott, R-SC, criticized the hearing postponement in a statement to FOX Business. He pointed out that rescheduling the Senate hearing while Gensler was still testifying before the House highlights issues within the SEC’s current leadership. Scott also expressed concerns about Gensler’s regulatory approach, alleging it has been detrimental to businesses during his three-year term.
The decision to postpone the hearing was made in consultation with Banking Committee Chairman Sherrod Brown, D-OH, with sources citing scheduling conflicts as the reason. A new date for the hearing will be determined and announced on the Banking Committee’s website.
Under current regulations instituted by the Dodd-Frank Act following the 2007-2008 financial crisis, bank regulators are mandated to testify before Congress. However, the SEC is not included under these parameters. Scott, along with nine other Republicans on the Senate Banking Committee, seeks to change this through their proposed legislation.
The Republican senators argue that their bill would re-focus the SEC on its primary mission of facilitating capital formation, protecting investors, and maintaining fair, orderly, and efficient markets. They contend that additional oversight is essential to ensure the SEC fulfills its three-part mission without imposing overly burdensome regulations that may hinder innovation and market participation.
In conclusion, Scott emphasized the importance of passing the Empowering Main Street in America Act to mandate the SEC Chair’s semi-annual testimonies, which he believes will address the issues of regulatory hostility and improve the agency’s accountability.
