Ignites Quotes Partner Bruce R. Kraus on New Bill that Limits SEC’s Rulemaking Power
January 18, 2017

Partner Bruce R. Kraus is quoted in the Ignites article “House Bill Demands More Rigorous SEC Cost-Benefit Analyses.” The article discusses a bill that was recently passed by the House of Representatives that calls for the agency to show that the benefits of proposed regulations outweigh their costs, and that rulemaking is a more effective way of reaching regulatory objectives than any alternatives, including amending existing rules of creating financial incentives for laudable practices. Mr. Kraus says the law is unnecessary since the SEC’s Division of Economic and Risk Analysis has been producing “increasingly sophisticated, data-driven economic analyses for years.”

On January 9th the House of Representatives passed the Reins Act, which would require both chambers in Congress to approve any agency regulation with a $100 million impact on the economy. If that bill passes the Senate, the SEC would likely cease to draft new rules altogether, Mr. Kraus says. “It would effectively be the end of regulations,” he says. “I don’t see why any agency would even bother writing one.”