H.R.3484 - Business Owners Protection Act of 2025 (119th Congress)
Summary
H.R.3484, the Business Owners Protection Act of 2025, aims to terminate certain unused authorities of the Securities and Exchange Commission (SEC) that were established under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Specifically, it targets authorities that grant the SEC discretion to establish requirements for private entities but for which no notice of proposed rulemaking or guidance document was issued before January 1, 2025. The bill requires the SEC to submit a list of terminated authorities to Congress and make it publicly available within 180 days of enactment.
The bill's primary goal is to reduce regulatory burdens on businesses by eliminating dormant SEC powers. This is intended to foster a more business-friendly environment.
The bill amends Section 23 of the Securities Exchange Act of 1934 to implement these changes.
Expected Effects
If enacted, H.R.3484 would lead to the termination of specific, unused SEC authorities related to private entities, potentially reducing compliance costs for businesses. The SEC would be required to publish a list of these terminated authorities.
This could result in a shift in the regulatory landscape, potentially impacting investor protection and market oversight depending on the nature of the terminated authorities.
The long-term effects will depend on how critical these unused authorities were for the SEC's regulatory functions.
Potential Benefits
- Reduced regulatory burden for businesses, potentially leading to cost savings.
- Increased business flexibility and reduced compliance requirements.
- Clarification of the SEC's active regulatory powers through the required list of terminated authorities.
- May encourage more business investment due to a perceived reduction in regulatory risk.
- Could streamline SEC operations by focusing on actively used authorities.
Most Benefited Areas:
Potential Disadvantages
- Potential weakening of investor protection if terminated authorities were intended to address future risks or unforeseen circumstances.
- Reduced SEC oversight of certain private entities, potentially increasing the risk of financial misconduct.
- Uncertainty regarding the scope and impact of the terminated authorities until the SEC publishes the required list.
- Possible increase in financial instability if the terminated authorities were designed to prevent systemic risks.
- May create a perception of reduced regulatory vigilance, potentially encouraging risky behavior by some businesses.
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 1, which grants legislative powers to Congress. Congress has the authority to modify or repeal existing laws, including those that delegate authority to regulatory agencies like the SEC.
The bill does not appear to infringe upon any specific constitutional rights or protections. The requirement for the SEC to publish a list of terminated authorities promotes transparency and accountability, which aligns with principles of good governance.
However, the constitutionality of the underlying Dodd-Frank Act, from which these authorities originate, has been debated, but this bill does not directly address those broader constitutional questions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).