Senate Banking Committee approves capital formation bills

© Reuters. Senate Committee on Banking, Housing and Urban Affairs Chairman Mike Crapo (R-ID) listens to testimony from Federal Reserve Chair Janet Yellen on Capitol Hill in Washington.

By Sarah N. Lynch

WASHINGTON (Reuters) – A U.S. Senate panel on Thursday approved with bipartisan support a series of bills aimed at stimulating capital formation, marking its first step this year toward modernizing market rules that, according to critics, they are outdated and hamper business expansion and investment.

The move is part of Congress’s ongoing effort to streamline the US financial sector and is viewed largely independent of US President Donald Trump‘s push to repeal or replace regulations that he claims they could impede economic growth.

The Senate Banking Committee, led by Republican Idaho President Mike Crapo, is now ready to send five bills to the Senate that garnered support from both Democrats and Republicans, with Democratic Senators Elizabeth Warren and Jack Reed the only dissenters.

Sherrod Brown, the highest-ranking Democrat on the panel, praised the bipartisan work that went into the bills and said he is optimistic “there are additional common sense steps” that can be addressed below.

The bills propose a variety of changes to Securities and Exchange Commission regulations, such as increasing the dollar amount of stock options that private companies can grant employees in a given year from $ 5 million to $ 5 million. 10 million, and ease restrictions to allow brokers to post research. on the global $ 3.7 trillion exchange-traded fund market.

They would also increase the number of people who can invest in venture capital funds without activating certain federal rules, subject mutual funds in Puerto Rico to the same rules that funds already face in the continental US, and credit companies. Stock exchanges for any charge and encumbrance they could. they have overpaid the SEC in the last decade.

Pennsylvania Republican Sen. Pat Toomey, who co-sponsored the bill involving options to buy shares in private companies, said Thursday that he hopes the measure “will be considered soon by the full Senate.”

Thursday’s hearing was the first time since the November election that the Republican-led Senate Banking Committee met to consider financial legislation.

Meanwhile, the US House of Representatives Committee on Financial Services is also preparing to push for capital raising through a more comprehensive rewrite of the 2010 Dodd-Frank financial reform legislation.

Trump’s choice to lead the SEC, Wall Street bargaining attorney Jay Clayton has previously privately discussed ideas with Trump on how to help stimulate capital formation.

All the bills passed by the panel on Thursday have been considered in previous years of Congress, but never became law. Some of the bills also have companions in the House introduced this year.

Disclaimer: Fusion Media wishes to remind you that the data contained on this website is not necessarily accurate or in real time. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but by market makers, so the prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not appropriate for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur as a result of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any responsibility for loss or damage as a result of reliance on information, including data, quotes, charts, and buy / sell signals contained on this website. Be fully informed about the risks and costs associated with trading financial markets, it is one of the riskiest investment forms possible.