Press Releases

Today, the House Financial Services Committee is holding a Capital Markets Subcommittee hearing, led by Subcommittee Chair Ann Wagner (MO-02), to examine the Securities and Exchange Commission's (SEC) approach to regulation and enforcement and explore ways to reinforce accountability, due process and public confidence in U.S. capital markets.

Read Subcommittee Chair Wagner’s opening remarks as prepared for delivery:

"Good afternoon. I want to thank our witnesses and all those in attendance for joining us today.

"This hearing is part of an ongoing effort by this Subcommittee to examine how effectively the Securities and Exchange Commission is executing its Congressional mandate, and to ensure our regulatory framework supports, rather than stifles, the world’s strongest capital markets.

"For several years, the SEC drifted away from the principles that have long made our capital markets work.

"Rulemaking accelerated without sufficient economic analysis, enforcement actions increasingly replaced clear rules, and decisions of enormous consequence were made with too little transparency or accountability.

"That period raised serious concerns among public companies, Main Street investors, small businesses, and entrepreneurs about whether the SEC was faithfully serving its statutory mission.

"This hearing is not about relitigating the past. It is about ensuring the future of the SEC is grounded in the rule of law and respect for due process.

"Under Chairman Paul Atkins, the Commission has begun the hard work of righting the ship, restoring internal discipline, and re-centering the agency back to its core statutory mission.

"We welcome that progress, but progress alone is not enough. Lasting reform requires durable guardrails, and that is where Congress must lead.

"First, we must restore integrity to the SEC’s rulemaking process.

"Rules should not be rushed, stacked on top of one another, or justified by speculative benefits while real costs are ignored. Notice-and-comment is not a box to check, it is a foundation of administrative law.

"Rigorous cost-benefit analysis is not optional, it is essential to ensuring that rules actually serve investors and markets rather than undermine them.

"Second, we must end regulation by enforcement. The SEC is a civil enforcement agency, not a policy-making substitute for Congress.

"Market participants deserve clear rules of the road before they are punished for crossing them.

"Enforcement should target fraud and clear violations of established rules, not serve as a substitute for notice-and-comment rulemaking or expand regulatory authority beyond what Congress has authorized.

"Third, we must address the SEC’s structure and internal decision-making.

"Over time, authority has drifted away from the Commission itself and toward staff-level actions that lack transparency and accountability.

"Structural reform is necessary to ensure major policy decisions are made by accountable officials and subject to proper oversight.

"That is why this Subcommittee is examining targeted legislative reforms, including proposals to strengthen economic analysis requirements, reinforce meaningful public comment periods, clarify enforcement standards, and modernize the Commission’s structure so it operates efficiently and within its statutory bounds.

"Let’s be clear: these reforms are not about weakening the SEC. They are about making the agency stronger, more credible, more predictable, and more faithful to the law.

"Today’s witnesses bring deep experience from inside and outside the Commission, and I look forward to their insights as we consider how best to restore accountability, due process, and public confidence in the Commission."