As Republicans prepare to take control of the House next month, a trio a GOP lawmakers introduced a bill signaling added oversight and scrutiny coming to the Securities and Exchange Commission.
The Review the Expansion of Government Act, or REG Act, introduced Wednesday by Rep. Young Kim, R-Calif.; Rep. French Hill, R-Ariz.; and Rep. Bill Huizenga, R-Mich., would require the SEC to review every final rule it promulgates every three years after implementation.
The agency would be required to create a plan on how it would carry out this review and report to Congress when it fails to conduct a timely review.
The lawmakers noted in a news release that the SEC's active rule-making program — there are currently more than 50 rule proposals on its agenda — and an October report from the SEC's office of the inspector general that found SEC staff have had difficulties managing resources due to the increase in the agency's rule-making activities as reasons the bill is needed.
"Recent events have made clear that the SEC's current regulatory approach raises compliance costs for small businesses, investors and entrepreneurs," Ms. Kim said in the news release. "The REG Act will establish needed congressional oversight over the SEC and ensures its rules are modernized, not burdening small businesses, and are working as intended."
Added Mr. Huizenga in the same news release, "The REG Act is a commonsense piece of legislation designed to rein in bureaucracy and require timely reviews of the SEC's regulatory process."
With only a couple weeks left in the congressional session and support from only one side of the aisle, the bill is unlikely to move.
Republicans in Congress have criticized the SEC and Chairman Gary Gensler for the agency's wide-ranging regulatory proposals, especially when it comes to climate and environmental, social and governance matters.
Earlier this month, House Republicans, including Mr. Huizenga, introduced a bill that would limit the SEC's ability to establish additional disclosure requirements on public companies, including ones laid out in the agency's proposed public company climate disclosure rule.
With Republicans in charge of the House next year, more SEC-related bills and hearings are expected.