[JURIST] The US House of Representatives [official website] approved the SEC Regulatory Accountability Act [materials] on Thursday, which requires the Securities and Exchange Commission [official website] to perform a cost-benefit analysis before implementing any new regulations. According to the summary of the bill, the SEC “shall consider [the bill’s] impact on investor choice, market liquidity, and small businesses” in performing the analysis. The SEC shall also review existing regulations to determine if they are insufficient or impractical, and modify or repeal regulations that do not meet this standard. The bill passed [Reuters report] by a vote of 243-183, with only nine Democrats voting in favor. The Senate [official website] will now vote on the bill, which may face opposition from Senate Democrats. Also on Thursday, the House passed the Commodity End User Relief Act [materials], which also requires a cost-benefit analysis from the Commodity Futures Trading Commission [official website]. The bill prevents the CFTC from changing the dollar threshold for minor swap dealing from $8 billion and minimizes the CFTC’s ability to restrict positions traders can hold in commodity markets.

The enforcement of securities regulations continues to be a major concern in the US. In November the House’s Ways and Means Committee agreed to release information [JURIST report] from an SEC insider trading investigation. In October the SEC established new liquidation risk management rules [JURIST report] for mutual funds and exchange-traded funds that require the industry to establish programs that protect shareholders in the event that investors suddenly sell off their assets. Also in October US District Judge Amos L. Mazzant III conditionally dismissed [JURIST report] an SEC suit against Texas Attorney General Ken Paxton for misleading investors.