Sponsors (8)
The bill reduces regulatory burdens and simplifies SEC rulemaking for broker‑dealers and advisers, but does so by removing statutory investor‑protection standards and the SEC's explicit authority—trading stronger public oversight and court access for lower costs and greater regulatory flexibility.
Broker-dealers and investment advisers will face lower compliance costs and paperwork because the bill removes or narrows statutory duties and arbitration-related requirements.
Broker-dealers and dealer firms retain the ability to require mandatory predispute arbitration, preserving a faster, private dispute-resolution path that can reduce litigation time and costs for firms.
The SEC and market participants will have simpler, more flexible rulemaking and enforcement options because the bill removes or relaxes certain prescriptive statutory standards.
Retail and individual investors (middle‑class families, taxpayers) will lose statutory protections because the bill removes the SEC's explicit authority to limit mandatory predispute arbitration and to enforce baseline broker‑dealer conduct standards.
Individual investors (middle‑class families) will continue to face barriers to suing in public courts or pursuing class actions because mandatory arbitration remains authorized, reducing access to public judicial remedies.
Retail investors and taxpayers may incur greater financial losses if enforcement weakens and misconduct rises, because removing statutory obligations could reduce preventive oversight and deterrence.
Based on analysis of 4 sections of legislative text.
Removes specific SEC statutory authorities and a broker "standard of conduct," limiting the SEC's power to restrict mandatory arbitration and narrowing mandated Commission duties.
Official title: To terminate unused authorities of the Securities and Exchange Commission that were established pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Introduced May 19, 2025 by Garland H. Barr · Last progress May 19, 2025
Removes multiple statutory authorities that let the SEC set or enforce standards and limits related to brokers, dealers, and investment advisers, including authority to restrict mandatory predispute arbitration clauses and a statutory broker "standard of conduct." The bill narrows or eliminates several existing duties and procedures by deleting specific subsections and trimming required language from SEC-related statutes, reducing the Commission's regulatory tools over broker-dealer and adviser relationships with clients. The changes primarily affect securities markets and investor protections: they repeal the SEC's explicit authority to limit mandatory predispute arbitration, remove a broker-dealer "standard of conduct," and shorten or delete mandated Commission obligations in the broker-dealer and adviser statutes. That shifts more dispute resolution and conduct rules away from federal statutory requirements and could change how disputes are resolved and how duties to clients are enforced.