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OpenMarket: Financial Regulation

  • Why Is Trump’s SEC Chairman Looking to Bring Back an Obama-era Financial Rule?

    April 1, 2020
    SEC Chairman Jay Clayton has proposed a set of regulations last fall that would bar many middle class investors from buying mutual funds and exchange-traded funds—financial products that have been on the market for nearly three decades. Instead of creating new red tape, Chairman Clayton should abandon these proposals and give all Americans the freedom to have a bite at the next Apple.
  • Financial Services Committee Democrats Release COVID-19 Wish List

    March 27, 2020
    This week, Democrats on the House Financial Services Committee unveiled their public policy response to the COVID-19 pandemic. While framed as a goodwill attempt at helping struggling Americans, the partisan legislation contains a number of controversial provisions that have no place in an emergency, short-term relief package.
  • Don’t Save Restaurants by Shafting Consumers

    March 20, 2020
    Restaurants are among the hardest—if not the hardest—hit of industries impacted by the COVID-19 pandemic. Like other industries, restaurants are lobbying Congress and state legislatures for assistance. The proposals of the National Restaurant Association have some healthy policy morsels that will benefit all, but some other items that will give restaurant consumers severe indigestion.
  • As Supreme Court Debates CFPB Constitutionality, Agency Accountability Hangs in the Balance

    March 13, 2020
    The Supreme Court heard oral arguments last week over the constitutionality of the Consumer Financial Protection Bureau and whether, as currently structured, it is too far removed from executive oversight. The outcome of this case has become increasingly important given the Bureau’s continuous efforts to skirt legal accountability and harass businesses into near bankruptcy.
  • SEC’s Proposed Rules Would Take ETFs out of the Hands of Middle-Class Investors

    March 6, 2020
    CEI recently signed on to a coalition letter encouraging the Securities and Exchange Commission to abandon its plans to further regulate certain financial products and impose additional sales-practice rules between broker-dealers and investment advisors and their clients. These proposed rules would impose an intrusive and burdensome regulatory regime on financial markets and severely limit the ability of everyday investors to freely purchase or sell some publicly traded securities.
  • Chairman Crapo Offers Hope for Safe Banking in Controversial Industries

    February 25, 2020
    Last October, the House passed the Secure and Fair Enforcement (SAFE) Banking Act to provide safe harbor for banks and credit unions doing business with legal cannabis businesses. Following its passage, Senate Banking Committee Chairman Mike Crapo issued a recommendation to merge language from the Financial Institution Consumer Protection Act—a proposed measure that would prevent regulators from ordering depository institutions to terminate the accounts of legal businesses they disapprove of—into the SAFE Banking Act. This would resolve a threat posed to businesses seen as “high risk” by agency bureaucrats.
  • Democratic Witnesses Oppose Interest Rate Cap

    February 13, 2020
    American Banker ran a piece last week on a proposed law to impose an interest rate cap on small-dollar loans. While the hearing revealed the inner-party conflict over the legislation, the divide was further demonstrated by Democratic witnesses who contradicted their written testimony in support of a rate cap by seeming to question the merits of such a measure.
  • Interest Rate Caps Harm Financial Inclusion; Bank Partnerships Spread Inclusion Around

    February 12, 2020
    The House Financial Services Committee held a hearing last week on small-dollar lending and proposed legislation that would limit the interest rates on such loans. Many lawmakers are concerned that “payday and car-title loans can be harmful to consumers.” While it’s good to focus on improving the lives of financially strapped consumers, much of the hearing ignored basic economics and how the proposed interest rate caps would further harm poor consumers by likely shutting them out of access to legal credit entirely.
  • CFPB Takes a Step to End Regulation by Enforcement

    January 27, 2020
    After almost a decade of ambiguity, the Consumer Financial Protection Bureau has finally offered some clarity to its definition of what constitutes an “abusive” practice by lending institutions like banks and credit unions.
  • Despite Naysayers, Consumer Finance Panelists are Uniquely Qualified to Tackle Barriers to Financial Inclusion

    January 14, 2020
    Last week, the Consumer Financial Protection announced the membership of the newly created Taskforce on Federal Consumer Financial Law, which will work to “harmonize and modernize federal consumer financial laws” and report to the CFPB director with its recommendations on how to improve and strengthen the legal and regulatory regime around consumer finance.


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