H.R. 78: SEC Regulatory Accountability Act

By at 9 January, 2017, 1:37 pm

UPDATE: On January 12, 2016 the U.S. House passed H.R. 78 by a vote of 243-184.


The Honorable Ann Wagner

U.S. House of Representatives

Washington, DC  20515


Dear Representative Wagner:

The Small Business and Entrepreneurship Council (SBE Council) strongly supports H.R. 78, the “SEC Regulatory Accountability Act.”

Over the past two decades, SBE Council has consistently expressed our concerns about Securities and Exchange Commission (SEC) actions that do not take small business impact into account.  Make no mistake, SBE Council fully supports the need to balance investor protection with efforts that promote robust capital markets. However, the SEC remains excruciatingly slow to act upon positive and non-controversial reforms that will modernize rules and streamline compliance for startups and small businesses.  As you are well aware, excessive red tape raises the cost of capital and prevents startups and small businesses from obtaining the capital they need to scale and innovate.

H.R. 78 requires the SEC to assess the costs and benefits of regulatory actions and the impacts on small businesses, investor choice, and market liquidity. The bill also requires an exploration of regulatory alternatives, including the option of not regulating, to maximize the net benefits of SEC rulemakings.  Having SEC periodically review its regulations is critically important as cumulative and outdated regulation put U.S. capital markets at a competitive disadvantage.  This common sense reform included in H.R. 78 makes perfect sense, as technology and investor demand are promoting transparency and rich information for all types of investors.

Thank you for your leadership on this important regulatory reform initiative to strengthen capital formation. Please let SBE Council know how we can help you advance H.R. 78 into law.


Karen Kerrigan, President & CEO

cc: Members of the U.S. House of Representatives

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