House to Vote on Financial Choice Act Next Week

The US House of Representatives will consider Dodd-Frank replacement legislation next week. The bill, HR.10 or “the Financial CHOICE Act,” is designed to ameliorate and remove the detrimental effects created by the Dodd Frank law. The complicated Dodd-Frank rules were signed into law as a knee jerk reaction to the financial crisis. Many portions of Dodd-Frank have not yet been implemented due to the convoluted nature of the law.

Financial Services Committee Chairman Jeb Hensarling, the bill’s sponsor and persistent champion of the bill, stated;

“The Financial CHOICE Act offers economic opportunity for all and bank bailouts for none.  The era of ‘too big to fail’ will end and we will replace Dodd-Frank’s growth-strangling regulations on community banks and credit unions with reforms that expand access to capital so small businesses can create jobs and consumers have more choices and options when it comes to credit. With the Financial CHOICE Act, we will unleash America’s economic potential and give Main Street job creators desperately needed help so more Americans can find work, have good careers and give their families a better life.”

The CHOICE Act was approved by the Financial Services Committee last month by a vote of 34-26 largely along party lines. Hensarling says the bill has received strong support from community banks and credit unions but large financial institutions have not offer their support for the bill.

Buried within the bill are several Subtitles that impact capital formation for smaller companies including a portion aimed at improving Reg CF crowdfunding. While the punditry expects to see the bill pass the house, questions remain about its potential in the Senate.

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