FIRM Act

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Bill ID: 119/hr/2702
Last Updated: July 16, 2026

Sponsored by

Rep. Barr, Andy [R-KY-6]

ID: B001282

Follow the money

The bill

FIRM Act

HR. 2702, 119th Congress — read as touching Commercial Banks.

The sponsor

Rep. Barr, Andy [R-KY-6]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$92,054 raised

22 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

85% match to Project 2025

This bill's text tracks the "Trade" section, p. 859-862 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Placed on the Union Calendar, Calendar No. 131.

June 19, 2025

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece of legislative theater, courtesy of the esteemed members of Congress. The FIRM Act, a bill that reeks of desperation and special interest pandering.

**Main Purpose & Objectives**

The stated purpose of this bill is to "curtail the political weaponization of Federal banking agencies" by eliminating reputational risk as a component of supervision for depository institutions. In other words, Congress wants to prevent banks from being held accountable for their actions, lest they face negative publicity and public backlash.

**Key Provisions & Changes to Existing Law**

The bill removes any reference to reputational risk from guidance, rules, examination manuals, or similar documents established by Federal banking agencies. This means that banks can engage in questionable business practices without fear of reprisal from regulators. The bill also prohibits Federal banking agencies from engaging in activities related to the regulation, supervision, or examination of reputational risk.

**Affected Parties & Stakeholders**

The usual suspects are behind this bill: big banks, financial institutions, and their lobbyists. They're tired of being held accountable for their actions and want a free pass to engage in shady business practices without fear of repercussions. The real victims here are the American people, who will be left vulnerable to predatory banking practices.

**Potential Impact & Implications**

This bill is a recipe for disaster. By removing reputational risk as a consideration, banks will be emboldened to engage in reckless behavior, knowing that they won't face any consequences. This will lead to a lack of accountability, increased risk-taking, and potentially catastrophic failures. The bill's proponents claim it will promote "safety and soundness" in the financial system, but that's just a euphemism for "letting banks do whatever they want."

In reality, this bill is a symptom of a deeper disease: the corrupting influence of money in politics. Congress is once again putting the interests of their corporate donors above those of the American people. It's a classic case of regulatory capture, where the regulated entities (banks) are dictating policy to their supposed regulators (Congress).

In conclusion, the FIRM Act is a farce, a thinly veiled attempt to gut financial regulations and let banks run amok. It's a bill that reeks of desperation, special interest pandering, and contempt for the American people. But hey, what's new in Washington?

Related Topics

Banking & Financial ServicesFederal Budget & Appropriations
Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Barr, Andy [R-KY-6]

Congress 119 • 2024 Election Cycle

Total Contributions
$92,054
21 donors
PACs
$0
Organizations
$1,300
Committees
$0
Individuals
$90,754

No PAC contributions found

1
TED J. BALESTRERI ENTERPRISES
1 transaction
$1,000
2
QUEENSLAKE
1 transaction
$300

No committee contributions found

1
BOUCHER, DAWN D
2 transactions
$6,800
2
VESTER, NANCY
1 transaction
$6,600
3
KOLLAR, CLINT WILLIAM
1 transaction
$6,600
4
FIELD, CHESTER JACK
1 transaction
$6,600
5
FISHER, KENNETH
1 transaction
$6,600
6
FISHER, SHERRILYN
1 transaction
$6,600
7
BROWN, CHRIS
1 transaction
$5,600
8
DARWISH, SAM
1 transaction
$5,000
9
CORRELL, JESS T.
1 transaction
$5,000
10
JOHNSON, TRAVIS
1 transaction
$5,000
11
BARKER, JAMES
1 transaction
$3,409
12
KAUDER, JOSEPH
1 transaction
$3,409
13
LEVINE, ALLAN
1 transaction
$3,409
14
LINDSAY, OLIVIA
1 transaction
$3,409
15
SCHWIMMER, STEVEN
1 transaction
$3,409
16
WOLFF, JARED
1 transaction
$3,409
17
ATKINS, RANDALL
1 transaction
$3,300
18
BARON, CHRIS
1 transaction
$3,300
19
BAUGUESS, SCOTT
1 transaction
$3,300

Cosponsors & Their Campaign Finance

This bill has 10 cosponsors. Below are their top campaign contributors.

Rep. Torres, Ritchie [D-NY-15]

ID: T000486

Top Contributors

10

1
OPEN HAND ASSOCIATION, INC.
OrganizationBRONX, NY
$5,000
Jan 10, 2024
2
JANNEY MONTGOMERY SCOTT
OrganizationPHILADELPHIA, PA
$4,589
May 31, 2023
3
HABEMATOLEL POMO OF UPPER LAKE TRIBE OF CALIFORNIA
OrganizationUPPER LAKE, CA
$3,300
Jul 18, 2023
4
OTOE MISSOURIA TRIBE OF OKLAHOMA
OrganizationRED ROCK, OK
$3,300
Jul 18, 2023
5
TURTLE MOUNTAIN BAND OF CHIPPEWA OF NORTH DAKOTA
OrganizationBELCOURT, ND
$3,300
Jul 17, 2023
6
JANNEY MONTGOMERY SCOTT
OrganizationPHILADELPHIA, PA
$2,976
Apr 28, 2023
7
JANNEY MONTGOMERY SCOTT
OrganizationPHILADELPHIA, PA
$682
Jun 6, 2023
8
JANNEY MONTGOMERY SCOTT
OrganizationPHILADELPHIA, PA
$270
Jul 5, 2023
9
JANNEY MONTGOMERY SCOTT
OrganizationPHILADELPHIA, PA
$227
Jul 31, 2023
10
JANNEY MONTGOMERY SCOTT
OrganizationPHILADELPHIA, PA
$48
Jun 30, 2023

Rep. McClain, Lisa C. [R-MI-9]

ID: M001136

Top Contributors

10

1
A & ALL WASTE LLC
OrganizationOAKLAND TWP, MI
$1,000
Oct 21, 2024
2
THE CHICKASAW NATION
OrganizationADA, OK
$1,000
Dec 31, 2023
3
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$1,000
Apr 20, 2023
4
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
OrganizationSCOTTSDALE, AZ
$1,000
Apr 20, 2023
5
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,000
Sep 11, 2023
6
THE CHICKASAW NATION
OrganizationADA, OK
$1,000
Sep 30, 2023
7
BANKE, BARBARA R.
IndividualGEYSERVILLE, CA
$6,600
Nov 16, 2023
8
SAMONA, MAZIN
WILD BILL'S TOBACCO • CEO
IndividualTROY, MI
$6,600
Sep 15, 2023
9
ALKHAFAJI, AMMAR
W INVESTORS GROUP • PRINCIPAL
IndividualSOUTHFIELD, MI
$6,600
Jul 24, 2023
10
YALDO, RUDI
PEARL TRADING LLC • CEO
IndividualBLOOMFIELD HILLS, MI
$6,600
Jul 21, 2023

Rep. Lucas, Frank D. [R-OK-3]

ID: L000491

Top Contributors

10

1
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Jun 17, 2024
2
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Jun 17, 2024
3
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Jun 5, 2023
4
GATES, WILLIAM
BREAKTHROUGH ENERGY • PHILANTHROPIST
IndividualREDMOND, WA
$3,300
Oct 19, 2023
5
NATION, CHEROKEE
INDIAN TRIBE • INDIAN TRIBE
IndividualTAHLEQUAH, OK
$3,300
Dec 26, 2023
6
LOVE, GREG
LOVE'S TRAVEL STOPS • CO-CEO
IndividualOKLAHOMA CITY, OK
$3,300
Mar 5, 2024
7
LOVE, GREG
LOVE'S TRAVEL STOPS • CO-CEO
IndividualOKLAHOMA CITY, OK
$3,300
Mar 5, 2024
8
PILLMORE, BRIAN
SELF • BUSINESS OWNER
IndividualYUKON, OK
$3,300
Mar 4, 2024
9
HILLIARY, MEGAN
HILLIARY CUSTOM HOMES • DESIGNER
IndividualLAWTON, OK
$3,300
Aug 1, 2023
10
WILMES, JEFF
WILMES CHEVROLET • AUTO SALES
IndividualALTUS, OK
$3,300
Aug 3, 2023

Rep. Loudermilk, Barry [R-GA-11]

ID: L000583

Top Contributors

10

1
BOLCH, CARL MR. JR.
IndividualATLANTA, GA
$3,300
Dec 11, 2023
2
STEPHENSON, DONNA MRS.
NONE • HOMEMAKER
IndividualATLANTA, GA
$3,300
Dec 31, 2023
3
STEPHENSON, DONNA MRS.
NONE • HOMEMAKER
IndividualATLANTA, GA
$3,300
Dec 31, 2023
4
STEPHENSON, JAMES MR.
YANCEY BROTHERS • CHAIRMAN
IndividualATLANTA, GA
$3,300
Dec 31, 2023
5
STEPHENSON, JAMES MR.
YANCEY BROTHERS • CHAIRMAN
IndividualATLANTA, GA
$3,300
Dec 31, 2023
6
STEPHENS, WARREN
IndividualLITTLE ROCK, AR
$3,300
Dec 4, 2023
7
STEPHENS, WARREN
IndividualLITTLE ROCK, AR
$3,300
Dec 4, 2023
8
TEAGUE, GREGORY D. MR.
CROY ENGINEERING • ENGINEER
IndividualELLIJAY, GA
$3,300
Oct 11, 2023
9
DICKERSON, JASON
QUEST • PRESIDENT
IndividualCANTON, GA
$3,300
Mar 12, 2024
10
MORRIS, JOHN
REPAY HOLDINGS • CEO
IndividualATLANTA, GA
$3,300
Mar 13, 2024

Rep. Rose, John W. [R-TN-6]

ID: R000612

Top Contributors

10

1
OTOE MISSOURIA TRIBE OF OKLAHOMA
OrganizationRED ROCK, OK
$3,300
Dec 12, 2024
2
EVANS, JOHN B.
NGU RISK MANAGEMENT • PRESIDENT
IndividualHENDERSONVILLE, TN
$13,200
Feb 24, 2023
3
HUDSON, PHILLIP JR.
CUMBERLAND SUPPLY CO. INC. • SHAREHOLDER
IndividualCOOKEVILLE, TN
$13,200
May 20, 2023
4
VADEN, JAMES L.
SELF-EMPLOYED • ORTHODONTIST
IndividualCOOKEVILLE, TN
$13,200
May 8, 2023
5
BARNES, SAM T. DR.
SELF-EMPLOYED • PHYSICIAN
IndividualCOOKEVILLE, TN
$10,000
Feb 12, 2024
6
EVANS, JOHN B.
SELF-EMPLOYED • SALES
IndividualHENDERSONVILLE, TN
$10,000
Feb 27, 2024
7
BARNES, SAM T. DR.
SELF-EMPLOYED • PHYSICIAN
IndividualCOOKEVILLE, TN
$6,600
Dec 8, 2023
8
LIPMAN, ROBERT S.
LIPMAN BROTHERS • EXECUTIVE
IndividualNASHVILLE, TN
$6,600
Nov 9, 2023
9
SMITH, BRAD
RUSSELL STREET VENTURES • CEO
IndividualNASHVILLE, TN
$6,600
Oct 26, 2023
10
SMITH, LAUREN
LH SMITH CONSULTING • PRESIDENT
IndividualNASHVILLE, TN
$6,600
Oct 26, 2023

Rep. Wagner, Ann [R-MO-2]

ID: W000812

Top Contributors

10

1
OTOE MISSOURIA TRIBE
OrganizationRED ROCK, OK
$3,300
Aug 23, 2023
2
DEMOCRACY ENGINE, INC., PAC
OrganizationWASHINGTON, DC
$2,000
Jul 14, 2023
3
DEMOCRACY ENGINE, INC., PAC
OrganizationWASHINGTON, DC
$500
Mar 15, 2023
4
WINRED
OrganizationARLINGTON, VA
$9
May 9, 2024
5
WILHELM, MARK A MR.
SAFETY NATIONAL CASUALTY CORP. • CHAIRMAN & CEO
IndividualSAINT LOUIS, MO
$13,200
Dec 18, 2023
6
DRURY, TIM M.
DRURY DEVELOPMENT • PRESIDENT
IndividualSAINT LOUIS, MO
$13,200
Feb 27, 2023
7
DANFORTH, JOHN C
DOWD BENNETT LLP • ATTORNEY
IndividualSAINT LOUIS, MO
$13,200
Feb 17, 2023
8
TRACY, RICHARD L. MR.
DOT FOODS, INC. • PRESIDENT
IndividualDES PERES, MO
$13,200
Feb 17, 2023
9
RINEY, RODGER O. MR.
T.D. AMERITRADE • ADVISOR TO CEO
IndividualSAINT LOUIS, MO
$13,200
Mar 23, 2023
10
O'CONNELL, JOHN T.
RETIRED • RETIRED
IndividualSAINT LOUIS, MO
$13,200
Mar 15, 2023

Rep. Stutzman, Marlin A. [R-IN-3]

ID: S001188

Top Contributors

4

1
BLEIBERG, PAUL E
NATIONAL MILK PRODUCERS FED. • VP GOVERNMENT RELATIONS
IndividualWASHINGTON, DC
$3,000
Mar 26, 2023
2
TORREY, MICHAEL K
TORREY ADVISORY GROUP • GOVERNMENT AFFAIRS
IndividualARLINGTON, VA
$2,000
Mar 8, 2023
3
BECK, DANIELLE
IndividualWASHINGTON, DC
$1,000
Jun 6, 2023
4
REY, MARK
THE LIVINGTON GROUP • GOVERNMENT AFFAIRS
IndividualWASHINGTON, DC
$250
Mar 31, 2023

Rep. Timmons, William R. [R-SC-4]

ID: T000480

Top Contributors

10

1
OTOE MISSOURIA TRIBE
OrganizationRED ROCK, OK
$3,300
Sep 17, 2024
2
CATAWBA INDIAN NATION
OrganizationROCK HILL, SC
$2,000
May 7, 2024
3
CHEVES, WALLACE
SELF • DEVELOPER
IndividualLAS VEGAS, NV
$3,300
Sep 7, 2023
4
BURGAMY, LARRY G. JR.
LINCOLN ENERGY • BUSINESS OWNER
IndividualGREENVILLE, SC
$3,300
Oct 31, 2023
5
HODGES, MICHAEL LYNN
ADVANCE FINANCIAL • PRESIDENT
IndividualNASHVILLE, TN
$3,300
Feb 13, 2024
6
CARROLL, WILLIAM
IPS PACKING • BUSINESSMAN
IndividualGREER, SC
$3,300
Mar 31, 2024
7
FLOYD, KAREN K
SELF • CEO/PUBLISHER
IndividualSPARTANBURG, SC
$3,300
Mar 31, 2024
8
ADAMS, C. DAN
CAPITAL CORP • INVESTMENT BANKER
IndividualGREENVILLE, SC
$3,300
Feb 13, 2024
9
RODRIGUEZ, RAUL
CREI HOLDINGS • CEO
IndividualMIAMI, FL
$3,300
Mar 26, 2024
10
MILLEGAN, BRANTLY
SELF EMPLOYED • TECHNOLOGY
IndividualSIMPSONVILLE, SC
$3,300
Mar 13, 2024

Rep. Fitzgerald, Scott [R-WI-5]

ID: F000471

Top Contributors

10

1
HENDRICKS, DIANE M
ABC • OWNER
IndividualBELOIT, WI
$6,600
Jun 25, 2023
2
ROWAN, CAROLYN
CAROLYN ROWAN COLLECTION LLC • OWNER
IndividualGREENWICH, CT
$6,600
Aug 16, 2023
3
ROWAN, MARC J.
APOLLO GLOBAL • CEO
IndividualGREENWICH, CT
$6,600
Aug 16, 2023
4
SCHWARZMAN, STEPHEN
BLACKSTONE • CEO AND CHAIRMAN
IndividualNEW YORK, NY
$6,600
Nov 13, 2023
5
SCHMIDT, TIM
DELTA DEFENSE LLC • CEO
IndividualWEST BEND, WI
$6,600
Dec 10, 2023
6
SCHWARZMAN, CHRISTINE
RETIRED • RETIRED
IndividualNEW YORK, NY
$6,600
Nov 13, 2023
7
LEVY, EDWARD
EDWARD C. LEVY CO • CHAIRMAN
IndividualBIRMINGHAM, MI
$6,600
May 1, 2024
8
FOREST COUNTY POTAWATOMI COMMU, .
TRIBE • TRIBE
IndividualCRANDON, WI
$6,600
Jun 28, 2024
9
FISHER, SHERRILYN
PLANO 6500 LLC • MEMBER
IndividualPLANO, TX
$6,600
Jun 2, 2024
10
FISHER, KENNETH
FISHER INVESTMENTS • EXECUTIVE CHAIRMAN
IndividualPLANO, TX
$6,600
Jun 2, 2024

Rep. Moore, Tim [R-NC-14]

ID: M001236

Top Contributors

10

1
HUCKABEE, BOBBY
SOUTHLAND • ENTREPRENEUR
IndividualWRIGHTSVILLE BEACH, NC
$6,600
Apr 26, 2024
2
HUCKABEE, BOBBY
IndividualWRIGHTSVILLE BEACH, NC
$6,600
Jun 26, 2024
3
WORDSWORTH, ELAINE
CPFRM • EXECUTIVE
IndividualNASHVILLE, NC
$6,400
Dec 31, 2023
4
WORDSWORTH, ELAINE
IndividualNASHVILLE, NC
$6,400
Dec 31, 2023
5
KELLER, OSCAR A III
SELF EMPLOYED • REAL ESTATE DEVELOPER
IndividualSANFORD, NC
$5,000
Apr 23, 2024
6
KELLER, OSCAR A III
IndividualSANFORD, NC
$5,000
Jun 23, 2024
7
PARRISH, RODDRICK DOYLE
SUMMIT HOSPITALITY • PRESIDENT
IndividualRALEIGH, NC
$4,400
Sep 30, 2024
8
PARRISH, RODDRICK DOYLE
IndividualRALEIGH, NC
$4,400
Sep 30, 2024
9
BELL, III, JAMES
BELLLEGAL GROUP • ATTORNEY
IndividualGEORGETOWN, SC
$3,300
Nov 4, 2024
10
BEAM, DREW
BROAD RIVER HOLDINGS • REAL ESTATE
IndividualSHELBY, NC
$3,300
Nov 5, 2024

Donor Network - Rep. Barr, Andy [R-KY-6]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 66 nodes and 37 connections (48 secondary connections hidden)

Total contributions: $152,493

Top Donors - Rep. Barr, Andy [R-KY-6]

Showing top 21 donors by contribution amount

2 Orgs19 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 4 helped.

  • +Commercial Banksconfidence 0.95

    Section 4 and 5 prohibit Federal banking agencies from considering reputational risk in supervision of depository institutions, which includes commercial banks. This removes a tool that could be used to restrict banking services to certain industries, thereby benefiting commercial banks by reducing regulatory constraints and potential enforcement actions based on reputational risk.

  • +Cannabis & Other Viceconfidence 0.85

    Cannabis businesses (despite state legality) have long faced banking challenges due to federal illegality and reputational risk concerns. The bill's findings cite Operation Choke Point targeting certain industries, and cannabis is a prime example. By banning reputational risk considerations, the bill reduces a regulatory barrier to cannabis businesses accessing banking services, providing a clear benefit.

  • The bill's findings reference 'Operation Choke Point' and limiting access to financial services by certain industries. Private prisons have been subject to reputational risk concerns and potential banking restrictions. By prohibiting reputational risk considerations, the bill may reduce barriers for private prisons to access financial services, providing a benefit.

  • +Firearms & Ammunitionconfidence 0.80

    The firearms industry has faced banking restrictions due to reputational risk concerns (e.g., pressure on banks to sever ties with gun manufacturers). The bill's removal of reputational risk as a supervisory factor would limit agencies' ability to indirectly restrict banking services to firearms-related businesses, thus benefiting the industry.

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Rep. Barr, Andy [R-KY-6])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

  • from 27 contributions
    • SCHARF, CHARLIE$3,300
    • DIMON, JAMES$3,300
    • LEOPOLD, ROBIN$3,300
    • OESTERLE, MARK$2,500
    • MAGUIRE, MICHAEL$2,500

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Trade

Strong
Vector: 60%
Pages: 859-862AI Enhanced

AI Analysis:

"The FIRM Act aligns with Project 2025's goal of reducing politicization and ideological influence in federal regulatory agencies, particularly by removing reputational risk—a factor often tied to ESG and social policy considerations—from banking supervision. Both seek to refocus regulators on core safety-and-soundness missions rather than subjective or political agendas."

Key themes:regulatory independenceanti-politicizationESG oversightfinancial regulationagency accountability

— 827 — Section 5: Independent Regulatory Agencies with government.” Under the Biden FTC, he writes, firms try “to get out of anti- trust liability by offering climate, diversity, or other forms of ESG-type offerings.” Candeub says that state AGs “are far more responsive to their constituents” than the federal government generally is, and he recommends that the FTC establish a position in the chairman’s office that is “focused on state AG cooperation and inviting state AGs to Washington, DC, to discuss enforcement policy in key sectors under the FTC’s jurisdiction: Big Tech, hospital mergers, supermarket mergers, and so forth.” — 829 — 27 FINANCIAL REGULATORY AGENCIES SECURITIES AND EXCHANGE COMMISSION AND RELATED AGENCIES David R. Burton The primary purposes of the laws and regulations governing capital markets and of capital market regulators are to deter and punish fraud and other material misstatements to investors; foster reasonable, scaled disclosure of information that is material to investors’ financial outcomes and proxy voting decisions; and maintain fair, orderly, and efficient secondary capital markets. The Securities Act of 19331 and the Securities Exchange Act of 19342 reflect nearly nine decades of rushed and haphazard amendments. The securities laws are now extremely complex and do not constitute a coherent, rational regulatory regime. For example, the current SEC has proposed a climate change reporting rule that would quadruple the costs of being a public company.3 This would have a substantial adverse impact on existing companies. Over time, it would also sub- stantially reduce the number of public companies and therefore the number of investing options available to ordinary Americans. The Securities and Exchange Commission (SEC) should be reducing impediments to capital formation, not rad- ically increasing them. The SEC and Congress should fundamentally reform the securities laws gov- erning issuers, broker–dealers, exchanges, and other market participants. Among other things, they should establish a simplified and rationalized securities disclo- sure system with:

Financial Regulatory Agencies

Moderate
Vector: 63%
Pages: 872-874AI Enhanced

AI Analysis:

"The FIRM Act aligns with Project 2025's goal of reducing politicization in financial regulation by targeting reputational risk as a subjective supervisory factor, though it does not address the CFPB specifically or advocate for its abolition as Project 2025 does."

Key themes:reducing politicizationfinancial regulatory oversightobjective supervisionlimiting agency discretion

— 839 — Financial Regulatory Agencies On February 27, 2023, the Supreme Court granted the petition for a writ of certiorari.51 The Court should issue its final decision by 2024. The CFPB is a highly politicized, damaging, and utterly unaccountable federal agency.52 It is unconstitutional. Congress should abolish the CFPB and reverse Dodd–Frank Section 1061, thus returning the consumer protection function of the CFPB to banking regulators53 and the Federal Trade Commission. Provided the Supreme Court affirms the Fifth Circuit holding in Community Financial Ser- vices Association of America, the next conservative President should order the immediate dissolution of the agency—pull down its prior rules, regulations and guidance, return its staff to their prior agencies and its building to the General Services Administration. Until this can be accomplished, however, Congress should: l Ensure that any civil penalty funds not used to recompense wronged consumers go to the Department of the Treasury. The funds should not be retained by the Bureau to be dispensed at the pleasure of the Director— potentially to political actors. Moreover, the CFPB should not have a financial incentive to impose penalties. l Repeal Dodd–Frank Section 1071. This section, which relates to small- business data collection, imposes requirements on financial institutions’ lending to small firms, raises costs, and limits small businesses’ access to capital.54 l Require that no CFPB funds are spent on enforcement actions that are not based on a rulemaking that complies with the Administrative Procedure Act.55 l Require that respondents in administrative actions be allowed to elect whether an adjudication occurs in an administrative law court or an ordinary Article III federal court.56 l Specify the nature of “deceptive, unfair, and abusive” practices to define the scope of the CFPB mission more precisely. — 840 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. H.R. 5480, Securities Act of 1933, Public Law No. 73-22, 73rd Congress, May 27, 1933, https://govtrackus. s3.amazonaws.com/legislink/pdf/stat/48/STATUTE-48-Pg74.pdf (accessed February 20, 2023). 2. H.R. 9323, Securities Exchange Act of 1934, Public Law No. 73-291, 73rd Congress, June 6, 1934, https:// govtrackus.s3.amazonaws.com/legislink/pdf/stat/48/STATUTE-48-Pg881a.pdf (accessed February 20, 2023). 3. Mark T. Uyeda, Commissioner, U.S. Securities and Exchange Commission, “Remarks at the 2022 Cato Summit on Financial Regulation,” November 17, 2022, https://www.sec.gov/news/speech/uyeda-remarks- cato-summit-financial-regulation-111722 (accessed February 20, 2023); Hester M. Peirce, Commissioner, U.S. Securities and Exchange Commission, “It’s Not Just Scope 3: Remarks at the American Enterprise Institute,” December 7, 2022, https://www.sec.gov/news/speech/peirce-remarks-american-enterprise-institute-120722 (accessed February 20, 2023); comment letter from David R. Burton to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, “Re: The Enhancement and Standardization of Climate-Related Disclosures for Investors [File No. S7-10-2; Release No. 33-11042; RIN 3235-AM87],” June 17, 2022, https://www. sec.gov/comments/s7-10-22/s71022-20131980-302443.pdf (accessed February 20, 2023). 4. Size would probably be measured best by public float or the number of beneficial owners. 5. See David R. Burton, “Securities Disclosure Reform,” Heritage Foundation Backgrounder No. 3178, February 13, 2017, https://www.heritage.org/sites/default/files/2017-02/BG3178.pdf; David R. Burton, “Offering and Disclosure Reform,” Chapter 11 in Reframing Financial Regulation: Enhancing Stability and Protecting Consumers, ed. Hester Peirce and Benjamin Klutsey (Arlington, VA: Mercatus Center at George Mason University, 2016), pp. 277–315, https://www.mercatus.org/research/books/reframing-financial-regulation (accessed February 20, 2023); Andrew N. Vollmer, “Investor-Friendly Securities Reform to Increase Economic Growth,” Securities Regulation & Law Report, Bloomberg BNA, Vol. 49, June 5, 2017. 6. See, for example, David R. Burton, “Reforming the Securities and Exchange Commission,” Heritage Foundation Backgrounder No. 3378, January 30, 2019, https://www.heritage.org/sites/default/files/2019-01/ BG3378.pdf; Andrew N. Vollmer, “Testimony on Workforce Management Disclosures and Other SEC Issues,” submitted to the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, Committee on Financial Services, U.S. House of Representatives, December 6, 2022, https://www.congress.gov/117/ meeting/house/115227/witnesses/HHRG-117-BA16-Wstate-VollmerA-20221208.pdf (accessed February 20, 2023); David R. Burton, “Reforming FINRA,” Heritage Foundation Backgrounder No. 3181, February 1, 2017, https://www.heritage.org/sites/default/files/2017-02/BG3181.pdf; Hester Peirce, “The Financial Industry Regulatory Authority: Not Self-Regulation After All,” Mercatus Center at George Mason University Working Paper, January 2015, https://www.mercatus.org/research/working-papers/financial-industry-regulatory- authority-not-self-regulation-after-all (accessed February 20, 2023); Thaya Brook Knight, “Transparency and Accountability at the SEC and at FINRA,” Chapter 11 in Prosperity Unleashed: Smarter Financial Regulation, ed. Norbert J. Michel, (Washington: The Heritage Foundation, 2017) https://www.heritage.org/sites/default/ files/2017-02/11_ProsperityUnleashed_Chapter11.pdf. 7. Reorganization Plan No. 10 of 1950, U.S. Code Title 5—Appendix, Reorganization Plans, http://uscode.house. gov/view.xhtml?req=granuleid:USC-prelim-title5a-node84-leaf114&num=0&edition=prelim (accessed February 20, 2023). 8. The board or commission should evaluate the regulatory functions of the National Securities Exchanges, Registered Securities Future Product Exchanges, Registered Clearing Agencies (such as the Depository Trust Company (DTC), the National Securities Clearing Corporation (NSCC) and the Options Clearing Corporation (OCC)), the Municipal Securities Rulemaking Board (MSRB) and the National Futures Association (NFA). This board or commission should have a broad composition and permit minority reports. 9. Boyden Gray & Associates, Comments Submitted on Behalf of Alliance for Fair Board Recruitment Concerning the Nasdaq Stock Market LLC; Notice of Filing of Proposed Rule Change to Adopt Listing Rules Related to Board Diversity, Amendment No. 1, File No. SR-NASDAQ-2020-081, April 6, 2021 https://www.sec.gov/ comments/sr-nasdaq-2020-081/srnasdaq2020081-8639478-230941.pdf (accessed February 20, 2023); David R. Burton, “Nasdaq’s Proposed Board-Diversity Rule Is Immoral and Has No Basis in Economics,” Heritage Foundation Backgrounder No. 3591, March 9, 2021, https://www.heritage.org/sites/default/ files/2021-03/BG3591_0.pdf. The SEC is contemplating at least two rules that can be expected to require differential treatment based on race, sex, ethnicity, and so on. See Executive Office of the President, Office

Trade

Moderate
Vector: 62%
Pages: 863-865AI Enhanced

AI Analysis:

"The FIRM Act aligns with Project 2025's goal of reducing politicization in financial regulation by removing reputational risk as a supervisory factor, which parallels efforts to prevent ESG- or ideology-driven disclosures and oversight. Both seek to depoliticize financial regulation and focus on objective, safety-and-soundness-based supervision."

Key themes:depoliticization of financial regulationopposition to ESG/social justice influenceregulatory objectivitysafety and soundness focus

— 831 — Financial Regulatory Agencies l Either democratize access to private offerings by broadening the definition of accredited investor for purposes of Regulation D or eliminate the accredited investor restriction altogether.15 l Allow traditional self-certification of accredited investor status for all Regulation D Rule 506 offerings. l Exempt small micro-offerings from registration requirements.16 l Exempt small and intermittent finders from broker–dealer registration requirements and provide a simplified registration process for private placement brokers.17 l Exempt peer-to-peer lending from federal and state securities laws and reduce the regulatory burden on Regulation CF debt securities. l Make the Title I Emerging Growth Company (EGC) exemptions permanent for all EGCs. l Reduce the regulatory burden on small broker–dealers and exempt privately held, non-custodial broker–dealers from the requirements to use a PCAOB- registered firm for their audits. Congress should: l Amend the Internal Revenue Code to disregard crowdfunding and Regulation A shareholders for purposes of the 100-shareholder limit for Subchapter S corporations.18 BETTER CAPITAL MARKETS To improve capital markets, the SEC should: l Preempt blue sky registration, qualification, and continuing reporting requirements for securities traded on established securities markets (including a national securities exchange or an alternative trading system).19 l Terminate the Consolidated Audit Trail (CAT) program.20 l Abolish Rule 144 and other regulations that restrict securities resales and instead require a company that has sold securities to provide sufficient current informa- tion to the market to permit reasonable investment decisions and secondary sales. — 832 — Mandate for Leadership: The Conservative Promise Congress should: l Prohibit the SEC from requiring issuer disclosure of social, ideological, political, or “human capital” information that is not material to investors’ financial, economic, or pecuniary risks or returns. The proposed SEC climate change rule, which would quadruple the costs of being a public company, is particularly problematic.21 l Repeal the Dodd–Frank mandated disclosures relating to conflict minerals, mine safety, resource extraction, and CEO pay ratios.22 l Oppose efforts to redefine the purpose of business in the name of social justice; corporate social responsibility (CSR); stakeholder theory; environmental, social, and governance (ESG) criteria; socially responsible investing (SRI); sustainability; diversity; business ethics; or common- good capitalism. l Prohibit securities regulators, including SROs, from promulgating rules or taking other actions that discriminate, either favorably or unfavorably, on the basis of the race, color, religion, sex, or national origin of such individual or group. SEC ADMINISTRATION To enable it to achieve its core mission more effectively, the SEC should:23 l Publish better data on securities offerings, securities markets, and securities law enforcement and publish an annual data book of time series data on these matters. Specifically, the SEC Division of Economic and Risk Analysis (DERA) needs to do a much better job of collecting and reporting fundamental data regarding offerings, regulatory costs, violations, enforcement, investors, state regulator taxes, fees and activities, and other matters. l Ensure that SEC resources flow toward its core functions and away from ancillary and support functions or from missions that do not fall within the SEC’s statutory charge. l Ensure that any three SEC Commissioners are empowered to place an item on the agenda and to receive adequate staff support to do so even without the Chairman’s support.

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About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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