Protecting Private Job Creators Act

Bill Number

H.R. 3959

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-02-25: Placed on the Union Calendar, Calendar No. 448.

Last Updated

2026-06-11T23:26:40Z

AI-Generated Summary

Purpose

The legislation, titled the "Protecting Private Job Creators Act," aims to reduce regulatory burdens on the quotation (pricing and offering) of fixed-income securities, such as bonds and notes, by exempting them from a specific U.S. Securities and Exchange Commission (SEC) rule. This is intended to facilitate easier trading of these securities while maintaining oversight in other areas.

Key Provisions

• Exemption from Regulation: The bill amends federal regulations by exempting quotations of fixed-income securities from Section 240.15c2-11 of Title 17, Code of Federal Regulations. (This rule generally requires broker-dealers to have and maintain current public information about certain securities before publishing or submitting quotations for them, to prevent misleading quotes.)
• Definition of Fixed-Income Security: The term includes:
• Any note, bond, debenture (a type of long-term debt instrument), certificate of deposit for a security, certificate of deposit, asset-backed security (a security backed by pools of assets like loans), or other evidence of indebtedness.
• Any such security that can be converted into equity (ownership shares in a company), with or without payment, or that includes warrants or rights to buy equity.

Significant Changes to Existing Law

• This introduces a targeted exemption to Rule 15c2-11, which previously applied broadly to over-the-counter (OTC) securities. Fixed-income securities, often traded OTC, will no longer need to comply with the rule's requirements for current issuer information before quotation.
• No other changes to the rule or broader securities laws are made; the exemption is narrow and specific to fixed-income quotations.

Potential Impacts

• On Government Agencies: The SEC may see a reduced administrative burden in enforcing the rule for fixed-income markets, potentially allowing reallocation of resources to other areas like equity securities oversight.
• On Citizens and Businesses: Issuers and traders of fixed-income securities (e.g., companies issuing bonds) could experience lower compliance costs and faster trading, which might improve access to capital for private businesses. Investors may benefit from increased market liquidity but could face slightly less standardized information in quotations.
• On International Relations: Minimal direct impact, though it could indirectly affect U.S. fixed-income markets' attractiveness to foreign investors by streamlining domestic trading rules.

Main Stakeholders Affected

• Broker-Dealers and Financial Institutions: Primary beneficiaries, as they can quote fixed-income securities without gathering and verifying the same level of issuer data.
• Issuers of Fixed-Income Securities: Businesses and governments issuing bonds or notes, including private companies, which may find it easier to raise debt funding.
• Investors: Individual and institutional buyers of fixed-income products, who might see more efficient markets but need to rely on other disclosure mechanisms.
• SEC and Regulators: Indirectly affected through enforcement adjustments.

Notable Legal, Constitutional, or Political Implications

• Legal: The change promotes deregulation in a specific market segment, aligning with efforts to modernize securities rules, but it could raise questions about investor protection if reduced quotation requirements lead to less transparency. It does not alter core anti-fraud provisions under the Securities Exchange Act of 1934.
• Constitutional: No direct challenges; the bill falls within Congress's authority to regulate interstate commerce and securities markets.
• Political: Reflects a bipartisan push (with sponsors from both parties) to ease burdens on private sector job creators, potentially as part of broader financial reform debates, though the short title's focus on "job creators" may emphasize economic growth over the technical securities focus.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Downing, Troy [R-MT-2]

Cosponsors (7)

Rep. Fields, Cleo [D-LA-6], Rep. Gottheimer, Josh [D-NJ-5], Rep. Scott, David [D-GA-13], Rep. Wagner, Ann [R-MO-2], Rep. Sessions, Pete [R-TX-17], Rep. Moore, Tim [R-NC-14], Rep. Lawler, Michael [R-NY-17]

Recent Actions

• 2026-02-25: Placed on the Union Calendar, Calendar No. 448.
• 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-523.
• 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-523.
• 2025-12-17: Ordered to be Reported (Amended) by the Yeas and Nays: 41 - 11.
• 2025-12-17: Committee Consideration and Mark-up Session Held
• 2025-12-16: Committee Consideration and Mark-up Session Held
• 2025-06-12: Referred to the House Committee on Financial Services.
• 2025-06-12: Introduced in House
• 2025-06-12: Introduced in House

Bill Versions

• Protecting Private Job Creators Act — issued 2025-06-12 — PDF (4 pages)
• Protecting Private Job Creators Act — issued 2026-02-25 — PDF (4 pages)