The Committee on Capital Markets Regulation supports a transparent process for enacting regulatory reforms that would enhance the competitiveness of the U.S. financial markets and could survive a judicial challenge. Regulatory reform is important today, because as we describe throughout this Nothing but the Facts (“NBTF”) statement, agencies can make meaningful reforms even without legislative changes.

The Administrative Procedure Act of 1946 (the “APA”) sets forth the legal process for regulatory reform.1 This NBTF statement first describes agency discretion in enforcing existing regulations. It will then describe the legal process for reversing agency adjudications, which are agency actions that resolve facts on a case-by-case basis.2 Third, we will describe the more complex legal process for repealing and replacing agency rulemakings, which are agency actions that have future effect and relate to policy considerations. Finally, we describe how the Congressional Review Act can be used to repeal regulations that were finalized after May 2016.

We hope that this NBTF statement will assist policymakers seeking to enhance the regulations that cover the U.S. financial markets.

***

Read the full statement here.