SEC stripped of independence, enforcement weakened in sweeping deregulation bill
H.R. 9329 — SEC Reform and Restructuring Act · Filed by Ann Wagner (R-MO) · 4 cosponsors · Introduced Jun 18, 2026 · Reported out
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What it does
This bill restructures the SEC by requiring cost-benefit analysis for all new regulations, transferring the independent Public Company Accounting Oversight Board (PCAOB) into the SEC as a subordinate office, imposing new procedural requirements on rulemaking (minimum 30–60 day comment periods, cumulative regulatory impact assessment), and mandating GAO audits of SEC IT infrastructure and major rules. The bill benefits regulated financial firms by raising the regulatory bar for new rules and reducing enforcement penalties through a narrower definition of violations; it constrains the SEC's independence and rulemaking speed.
Why we flagged it
The bill's operative mechanism is to raise procedural and analytical barriers to SEC rulemaking (cost-benefit tests, cumulative impact review, extended comment periods), consolidate accounting oversight under SEC control, and narrow the definition of violations to reduce enforcement penalties. These are classic deregulatory moves dressed in procedural language.
What the text implies
- Transferring PCAOB to SEC eliminates an independent body created by Sarbanes-Oxley specifically to prevent SEC capture; the SEC Chairman now controls accounting oversight, reducing checks on conflicts of interest.
- The 'determination of number of violations' language (Section 801) allows firms to argue that multiple breaches of the same rule count as a single violation if they share a 'common originating cause'—dramatically reducing penalty exposure for systemic misconduct.
The full analysis lists 5 implications of this text.
Who stands to gain
large financial services firms (insurance, investment banking, asset management); accounting firms and audit service providers; securities traders and market participants subject to SEC enforcement