SEC Dodd-Frank Rulemaking Must Stand Test Of Time, Chair Says
Professor Joseph Grundfest comments on changing regulations recently implemented by the SEC for Bloomberg BNA.
On the fourth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Securities and Exchange Commission Chairman Mary Jo White July 17 stressed that commission rulemaking under the statute must be able to stand the test of time.
“We must continue our work with intensity, and we must be deliberate as we consider and prioritize our remaining mandates and deploy our broadened regulatory authority,” White said in a statement. “Progress will ultimately be measured based on whether we have implemented rules that create a strong and effective regulatory framework and stand the test of time under intense scrutiny in rapidly changing financial markets.”
However, Stanford law professor Joseph Grundfest, a SEC commissioner from October 1985 to January 1990, warned that it is “simply too soon” to pronounce on the quality of the agency's rulemaking for Dodd-Frank.
“It will take several years of experience on the ground before objective observers will be able to reach any conclusion regarding the effectiveness of any of these regulations,” he said.