The U.S. House has passed the SEC Regulatory Accountability Act, H.R. 78, which would require the agency to put its rules through a more rigorous cost-benefit analysis.
The bill, sponsored by Rep. Ann Wagner, R-Missouri, passed by a 243-184 vote on Thursday. It also stipulates that the SEC identify the issue, provide an appropriate cost-benefit analysis to justify the need for the regulation, and assess any available alternatives to rulemaking.
In addition, the agency would be prohibited from issuing a rule when it cannot make “a reasoned determination that the benefits of the intended regulation justify the costs of the regulation,” according to Wagner.
The commission also must review existing regulations every five years in order to identify any outdated, ineffective, or excessively burdensome regulations, and then is required to modify, streamline or repeal such rules.