SE Wyoming News

WASHINGTON, D.C – In a letter addressed to U.S. Treasury Secretary Janet Yellen, U.S. Senator Cynthia Lummis (R-WY) and eight of her colleagues have called on the Biden administration to comply with Section 123 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The senators are urging the Financial Stability Oversight Council (FSOC) to submit a report to Congress, as required by Section 123, on the economic impact of financial services regulatory changes aimed at reducing systemic risk.

Highlighting the importance of this report, the senators emphasized that the FSOC is already three years overdue on its obligation. This delay is particularly concerning as the Biden administration is currently pushing for a significant number of complex and interconnected rules. The senators expressed their concerns about the potential economic impact of these regulations on the efficiency of capital markets, the financial sector, and overall economic growth.

"The report must estimate the costs and benefits of such regulations on the efficiency of capital markets, the financial sector, and economic growth, and include recommendations on how to minimize said economic impact," stated the senators in their letter. They further highlighted that while FSOC delivered its first report on this topic to Congress in 2011 and its most recent report in March 2016, it has missed the 2021 deadline for its subsequent iteration.

Joining Senator Lummis in this call for action are U.S. Senators Mike Crapo (R-ID), Mike Rounds (R-SD), Thom Tillis (R-NC), Bill Hagerty (R-TN), JD Vance (R-OH), Katie Britt (R-AL), Kevin Cramer (R-ND), and Steve Daines (R-MT).

The senators' demand for the overdue report comes at a time when people in Wyoming and across the country are grappling with the record cost of living. It is crucial for Congress to have a comprehensive understanding of the economic impact of financial services regulatory changes to ensure that the policies put in place do not exacerbate the challenges faced by individuals and businesses.

The letter sent by Senator Lummis and her colleagues can be read in its entirety by clicking here. The senators are eagerly awaiting a prompt response from the Biden administration as they seek transparency and accountability in the financial regulatory process.