The House Financial Services Committee passed two bills recently out of committee relevant to the trading industry.
Last week the Committee chaired by Jeb Hensarling (Republican, State of Texas) passed four trading-related bills; all four received sponsorship from both Republicans and Democrats, significantly increasing the chances that they will become law.
- R. 910 directs the SEC to provide a safe harbor for research reports that cover Exchange Traded Funds. The bill was sponsored by Representatives French Hill (Republican, State of Arkansas) and Bill Foster (Democrat, State of Illinois)
- R. 1219 modernizes the limit on the number of individuals who can invest in certain venture capital funds before those funds must register with the SEC as “investment companies” under the Investment Company Act of 1940. The bill was sponsored by Representatives Patrick McHenry (Republican, State of North Carolina) and Nydia Velazquez (Democrat, State of New York)
- R. 1257 allows national securities exchanges registered with the SEC to offset previous overpayments the SEC against future fees, under a 10-year statute of limitations. The bill applies only to those overpayments made prior to the legislation’s date of enactment. The bill was sponsored by Representatives Gregory Meeks (Democrat, State of New York) and Randy Hultgren (Republican, State of Illinois)
- R, 1366, the US Territories Investor Protection Act of 2017- This bill ensures that investment companies in Puerto Rico, Guam, and elsewhere will operate subject to the same rules as their mainland counterparts, consistent with the SEC’s ability to gather information quickly using modern technology regardless of distance from Washington, D.C. or one of the SEC’s regional offices. The bill was sponsored by Representative Randy Hultgren (Republican, State of Illinois) and John Delaney (Democrat, State of Maryland)
“Top-down, Washington-driven policies have stacked the deck against small businesses. Excessive and outdated regulations give the biggest companies a competitive advantage, but undermine entrepreneurs, small business owners and the investors that would back them with capital. The system is indeed rigged, and Washington has rigged it,” said Chairman Jeb Hensarling in a press release announcing the bills. “These bills will help level the playing field so more Americans who have a good idea, determination and a dream of financial independence get the opportunity to succeed.”
The four bills now head to the full House of Representative for a vote. From there they go to the Senate and pass through the same procedure again, after which they go to committee, and then to the whole Senate for a vote. When Congress approves the bills, they are sent to the President, who – if he agrees with them – will sign them into law.