H.R.3959 - Protecting Private Job Creators Act (119th Congress)
Summary
H.R. 3959, the "Protecting Private Job Creators Act," seeks to exempt quotations of fixed-income securities from certain regulatory requirements under Section 240.15c2-11 of title 17, Code of Federal Regulations. The bill addresses concerns that the Securities and Exchange Commission (SEC) is applying rules intended for OTC equity markets to fixed-income markets without proper analysis or consideration of the differences between these markets. The bill aims to protect the ability of businesses to raise capital through fixed-income markets.
Expected Effects
If enacted, H.R. 3959 would reduce regulatory burdens on broker-dealers quoting fixed-income securities. This could potentially lower the cost of capital for businesses and increase activity in the fixed-income markets. The SEC would be prevented from applying Rule 15c2-11 to fixed-income securities.
Potential Benefits
- Reduced regulatory compliance costs for broker-dealers.
- Increased liquidity in fixed-income markets.
- Potentially lower cost of capital for businesses.
- Clarification of regulatory requirements for fixed-income securities.
- Encourages capital formation and investment.
Most Benefited Areas:
Potential Disadvantages
- Reduced transparency in fixed-income markets.
- Potential for increased risk of fraud and manipulation.
- Weaker investor protection.
- May disproportionately benefit large financial institutions.
- Could lead to regulatory arbitrage.
Constitutional Alignment
The bill falls under Congress's power to regulate commerce, as outlined in Article I, Section 8, Clause 3 (the Commerce Clause) of the U.S. Constitution. The regulation of securities markets is generally considered within the scope of interstate commerce. There are no apparent conflicts with specific constitutional rights or limitations.
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).