Mary Jo White, the newly installed Chairman of the Securities and Exchange Commission (SEC) testified yesterday before the House Appropriations Subcommittee on Financial Services and General Government regarding the agency’s budget request and numerous other items related to the SEC’s work. Chief among these are the Jumpstart Our Business Startups (JOBS) Act, implementation of the Dodd-Frank Act, and other rulemakings and questions mentioned by members of the committee.
Chairman White noted again, following a similar assertion during her nomination hearing in the Senate, that finalizing Congressionally mandated rulemakings from the Dodd-Frank Act and JOBS Act is among her top priorities. While she did not provide a set timeframe for the rulemakings, Chairman White reiterated her commitment to finishing these rules and mentioned that the SEC is actively engaged in this process.
Subcommittee Chairman Ander Crenshaw (R-FL) and several Members of the Committee asked Chairman White about the role cost-benefit analysis will play in rulemakings moving forward. Chairman White answered that strong economic analysis, including cost-benefit analysis, is essential to the rulemaking function of the SEC. Chairman White further noted that she is committed to the robust economic analysis of SEC rulemaking.
Chairman White was asked by Rep. Tom Graves (R-GA) about portfolio margining. Chairman White responded that the SEC had issued several letters to dealers to provide stop gap relief, and was in a constructive dialogue with dealers and the InterContinental Exchange (ICE) regarding a reasonable solution.
Regarding the SEC budget request, Chairman White noted that while the SEC has taken steps to be a more efficient agency, it is important that it has the resources needed to do the oversight it is charged with carrying out. With more entities coming under registration and oversight thanks to the Dodd-Frank Act, Chairman White noted that there is more work to be done by the agency and that funding is important to ensure proper oversight.
Learn more about this hearing from the Committee on Appropriations website.