SEC Reform and Restructuring Act
Sponsored By: Representative Wagner, Ann [R-MO-2]
In Committee
Summary
Stronger cost‑benefit review for SEC regulations is the bill’s core goal, requiring clear pre‑rule and post‑rule economic analyses so the Commission must explain why benefits justify costs. It also moves public company audit oversight into the SEC, orders GAO audits of SEC IT and major rules, and sets minimum public comment periods plus regular testimony to Congress.
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- Market participants and investors: Proposed and final SEC rules must identify affected parties, document why the rule meets its goals, and include qualitative and quantitative cost‑benefit work by the SEC Chief Economist. For rules deemed "major" the SEC must adopt a post‑adoption impact assessment plan with a 4‑year timeline and a 30‑day public comment window.
- Public accounting firms and audit oversight: The bill replaces the Public Company Accounting Oversight Board with an Office of Public Accounting Oversight inside the SEC, transfers registration, inspections, disciplinary authority, and standards oversight, and phases the change over a 2‑year transition period. Funding for the oversight program shifts to annual accounting support fees subject to SEC approval.
- SEC operations and public oversight: The Comptroller General must audit SEC information technology and data within 1 year and then study major SEC rules every 3 years. The SEC Chair must testify to key congressional committees at least every 6 months and the Commission must allow a minimum 60‑day public comment period for most proposals, or 30 days for imminent investor harm.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 0 costs, 4 mixed.
More cost reviews for SEC rules
If enacted, the bill would require the SEC to do detailed cost‑benefit work before and after issuing regulations. The SEC would use its Chief Economist to prepare quantitative and qualitative cost and benefit analysis, consider alternatives, and make a reasoned determination that benefits justify costs. For final "major rules," the SEC would publish a post‑adoption assessment plan and complete an assessment within four years (with one 90‑day extension) and put that assessment out for 30 days of public comment. The bill also defines what counts as an SEC "regulation" and lengthens public engagement and disclosure around rulemaking.
Public company audit oversight changes
If enacted, the bill would move public company audit oversight into a new Office of Public Accounting Oversight inside the SEC’s Office of the Chief Accountant. The SEC Chief Accountant would serve as Director and the new Office would run inspections and disciplinary proceedings for registered public accounting firms. The Public Company Accounting Oversight Board would be terminated two years after enactment and existing PCAOB rules would become Commission rules unless changed. The bill would also change how oversight and standard‑setting are paid by using annual accounting support fees starting two years after enactment.
New penalty-counting rule for securities
If enacted, the bill would add a uniform rule across major securities laws to treat related acts as a single violation for penalty purposes when they come from the same cause, the same misstatement, or a continuing failure. The change would apply across the Securities Act of 1933, the Exchange Act, and the Investment Company and Advisers Acts and would take effect on enactment. This would often limit multiplicative penalties for firms, but it could also affect remedies available to harmed investors.
SEC IT and agency reorganization
If enacted, the bill would require a GAO audit of the SEC's information technology and data handling within one year. The audit must compare SEC IT spending to other federal financial regulators and assess cybersecurity, contracting, and recent incidents. The bill would also require the SEC Chair to review the agency structure within 180 days and, where practicable, reduce the number of offices and officials reporting directly to the Chair within 90 days after the review, with a report to Congress within 30 days after reorganization. These steps would aim to improve agency operations but could also change regional office coverage.
Sponsors & CoSponsors
Sponsor
Wagner, Ann [R-MO-2]
MO • R
Cosponsors
Rep. Downing, Troy [R-MT-2]
MT • R
Sponsored 6/18/2026
Rep. Sessions, Pete [R-TX-17]
TX • R
Sponsored 6/18/2026
Rep. Huizenga, Bill [R-MI-4]
MI • R
Sponsored 6/18/2026
Rep. Kim, Young [R-CA-40]
CA • R
Sponsored 6/29/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov