Financial Regulatory Agencies

What the document says

“PCAOB and FINRA should be abolished, and their regulatory functions should be merged into the SEC.”

The Public Company Accounting Oversight Board oversees auditors and the Financial Industry Regulatory Authority regulates brokers. The part also asks Congress to establish an independent board to report within 18 months on how far the functions of other self-regulatory organizations, which it says are no longer self-regulatory in any meaningful sense, should move to the Commission.

What the document says

“Offices at financial regulators that promote racist policies (usually in the name of “diversity, equity, and inclusion”) should be abolished”

The part says discrimination based on immutable characteristics has no place in financial regulation, asks that regulations requiring appointments on the basis of race, ethnicity, sex or sexual orientation be eliminated, and says equal protection, equal opportunity and individual merit should govern regulatory decisions.

What the document says

“Statutorily limit the time for an investigation to two years with no extensions.”

The part says long investigations harm private parties and the quality of justice, and that with adequate management the Commission should not need more than two years even for complicated matters.

What the document says

“Eliminate all administrative proceedings (APs) within the SEC except for stop orders related to defective registration statements.”

In an administrative proceeding the Commission adjudicates a case before its own administrative law judge rather than in a federal court. The part says the enforcement system does not need both routes, and offers as an alternative that respondents be allowed to elect whether adjudication occurs in the Commission's court or an ordinary court.

What the document says

“Require that all SRO fines, including those imposed by FINRA, should go either to a newly established investor reimbursement fund or to the”

The full sentence ends with the Treasury, and the part adds that self-regulatory organizations should not have a financial interest in imposing fines. It separately asks that arbitration and disciplinary hearings be open to the public and reported, and that arbitrators make findings of fact subject to review.

What the document says

“Otherwise, the digital asset shall be deemed a commodity to be regulated by the CFTC, not the SEC.”

The part proposes a joint regulation under which a digital asset holder is not treated as party to an investment contract unless entitled to a share of earnings, a defined flow of payments, or rights against assets on liquidation. It says both agencies have been irresponsible in this area, choosing regulation by enforcement and doing it poorly, and that Congress should legislate if they do not act.

What the document says

“Congress should abolish the CFPB and reverse”

The full sentence asks Congress to abolish the bureau and reverse section 1061 of Dodd-Frank, returning the consumer protection function to banking regulators and the Federal Trade Commission. The part calls the bureau highly politicized, damaging, utterly unaccountable and unconstitutional, and says that provided the Supreme Court affirms a Fifth Circuit holding then pending, the next President should order the immediate dissolution of the agency, pull down its rules and guidance and return its staff to their prior agencies.