REG Act of 2026
- Sponsor
- Rep. Kim, Young [R-CA-40]
- Committees
- Financial Services Committee (primary)
- Last action
- Jun 24, 2026
Bottom line
The bill mandates that the SEC conduct a more comprehensive cumulative impact analysis of its rulemakings, potentially altering the scope and pace of future financial regulations.
What it actually does
This bill amends four federal securities laws: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. It requires the Securities and Exchange Commission (SEC) to consider the cumulative effects of a proposed rule, both individually and in conjunction with other related final or proposed rules, when determining if it promotes efficiency, competition, and capital formation.
Proponents argue
Supporters argue this bill would prevent regulatory overload, reduce unintended consequences for market participants, and ensure a more holistic and economically sound approach to financial regulation by forcing the SEC to consider the combined burden of multiple rules. It would promote greater regulatory clarity and stability, fostering capital formation and market efficiency.
Opponents contend
Opponents might contend that this requirement could unduly burden the SEC, create significant delays in critical rulemaking, and provide new avenues for regulated entities to challenge or obstruct necessary investor protections and market oversight by complicating the analysis process and increasing litigation risk.
The bill text is extremely short and easy to read, allowing ample time for comprehensive evaluation of its direct provisions.
Section 2(a)
Cumulative Effects Consideration for Securities Act Rules
This provision amends Section 2(b) of the Securities Act of 1933, which outlines the SEC's considerations when making rules. It adds a requirement that the SEC must consider the effects of a rule 'when considered individually or cumulatively with other related rules or regulations or other related and recent proposed rules or regulations' when determining if it will promote efficiency, competition, and capital formation.
Supporters argue
Supporters argue this ensures the SEC doesn't create a patchwork of regulations whose combined effect is detrimental or overly burdensome, fostering a more stable and predictable regulatory environment for capital markets.
Critics contend
Critics may argue that this adds an unnecessary layer of complexity and potential for litigation, which could delay or prevent the SEC from responding quickly to emerging market risks or implementing necessary investor protections.
Tradeoffs
This provision balances the desire for comprehensive regulatory impact assessment against the potential for increased administrative burden and slower regulatory response times for the SEC.
Section 2(b)
Cumulative Effects Consideration for Securities Exchange Act Rules
This provision amends Section 23(a)(2) of the Securities Exchange Act of 1934, which governs the SEC's rulemaking authority under that Act. It mandates that the SEC consider the cumulative effects of a rule with other related final or proposed rules when evaluating its impact on competition, efficiency, and capital formation.
Section 2(c)
Cumulative Effects Consideration for Investment Company Act Rules
This provision amends Section 2(c) of the Investment Company Act of 1940, requiring the SEC to consider the cumulative effects of a rule with other related final or proposed rules when determining if it promotes efficiency, competition, and capital formation in the context of investment companies.
Section 2(d)
Cumulative Effects Consideration for Investment Advisers Act Rules
This provision amends Section 202(c) of the Investment Advisers Act of 1940, mandating that the SEC consider the cumulative effects of a rule with other related final or proposed rules when evaluating its impact on efficiency, competition, and capital formation in the context of investment advisers.