Bi-partisan Senate legislation would require the SEC, CFTC and other independent federal agencies to analyze the costs and benefits of new regulations and tailor new regulations so as to minimize unnecessary burdens on the economy. The Independent Regulatory Analysis Act, S 3468, was introduced by Senators Rob Portman (R-OH), Mark Warner (D-VA) and Susan Collins (R-ME). Senator Portman said that, while independent federal agencies exercise vast power over financial services and other sectors of the economy, they are exempt from conducting a cost-benefit analysis of even major regulations. S 3468 would close this loophole for independent agencies by authorizing the President to bring them within the same regulatory review framework that applies to executive agencies. Senator Warner noted that basic cost-benefit principles should apply to all federal regulators, including independent agencies.Thus, under the legislation, the SEC and other independent agencies would be required to evaluate costs and benefits of new regulations and adopt the least burdensome regulatory approach.
It's about time.