SEC Reform and Restructuring Act

Bill Number: H.R. 9329
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Finance and Financial Sector
Status: Introduced
Latest Action: 2026-06-30: Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 23.
Last Updated: 2026-07-08T22:00:42Z

AI-Generated Summary

SEC Reform and Restructuring Act (H.R. 9329)

Purpose

This legislation seeks to reform the Securities and Exchange Commission (SEC) by enhancing regulatory accountability, increasing transparency and oversight, improving cybersecurity practices, streamlining accounting oversight, and clarifying enforcement procedures. It aims to ensure that SEC actions consider economic impacts, involve more congressional review, and reduce certain duplicative or expansive regulatory activities.

Key Provisions

Regulatory Accountability (Title I): Requires the SEC to identify problems before proposing rules, assess costs and benefits (qualitative and quantitative) using its Chief Economist, and ensure benefits justify costs. Rules must consider effects on investors, markets, small businesses, and competition, including cumulative impacts with other rules. Major rules need post-adoption assessments within four years.
Transparency (Title II): Mandates semiannual testimony by the SEC Chairman before congressional committees, with all Commissioners participating at least annually.
Cybersecurity (Title III): Directs the Government Accountability Office (GAO) to audit the SEC's information technology infrastructure, data handling, spending compared to other regulators, contracting quality, and any recent breaches, with recommendations for improvements.
Cumulative Regulation Review (Title IV): Amends securities laws to require consideration of rules' effects individually or cumulatively with related existing or proposed rules.
Public Company Accounting Oversight (Title V): Transfers the Public Company Accounting Oversight Board (PCAOB) to the SEC as the Office of Public Accounting Oversight within the Chief Accountant's office. Repeals PCAOB inspection, investigation, and enforcement sections; shifts funding and standards-setting to the SEC; sets a two-year transition period.
Major Rules Study (Title VI): Requires GAO to conduct triennial studies on up to 10 major SEC rules, comparing projected versus actual costs and benefits, and evaluating effects on capital formation, markets, and investors.
Public Comment Periods (Title VII): Establishes minimum comment periods of 60 days (or 30 days for rules addressing imminent investor harm), excluding federal holidays and starting from Federal Register publication.
Enforcement Clarity (Title VIII): Specifies that related acts of noncompliance stemming from a common cause, the same misstatement or omission, or a continuing failure count as a single violation when determining penalties under securities laws.
SEC Modernization (Title IX): Requires the SEC Chairman to review the agency's organizational structure, reduce the number of offices reporting directly to the Chairman where possible, and submit a report to Congress. Allows potential consolidation of regional offices.

Significant Changes to Existing Law

Integrates the independent PCAOB into the SEC, eliminating its separate board structure and certain self-regulatory functions.
Adds explicit requirements for cost-benefit analysis, cumulative impact reviews, and post-rule assessments across multiple securities statutes.
Introduces new congressional reporting obligations and minimum comment timelines not previously mandated.
Modifies penalty calculations to treat clustered violations as single events in enforcement actions.

Potential Impacts

Government Agencies: Increases SEC administrative burdens through expanded analyses, assessments, and reporting; involves GAO in ongoing audits and studies; shifts PCAOB operations and funding under SEC control.
Citizens and Markets: May lead to more measured rulemaking that accounts for economic effects on investors and businesses, potentially affecting market liquidity and small business access; could slow regulatory processes due to added requirements.
International Relations: Maintains existing cooperative arrangements with foreign auditor oversight bodies during the transition but centralizes related authority within the SEC.

Main Stakeholders Affected

The Securities and Exchange Commission and its staff.
The Public Company Accounting Oversight Board and its employees.
Public companies, their auditors, and accounting firms.
Investors and market participants.
Congressional committees on financial services and banking.
The Government Accountability Office.

Notable Legal, Constitutional, or Political Implications

Raises questions about the independence of accounting oversight by moving PCAOB functions under SEC authority, potentially altering the balance between executive agency control and specialized boards.
Strengthens congressional oversight of the SEC through regular testimony and studies, which may affect the agency's operational autonomy.
Emphasizes economic analysis in rulemaking, which could influence how courts review SEC actions for compliance with statutory requirements.

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

Sponsor

Rep. Wagner, Ann [R-MO-2]

Cosponsors (4)

Rep. Downing, Troy [R-MT-2], Rep. Sessions, Pete [R-TX-17], Rep. Huizenga, Bill [R-MI-4], Rep. Kim, Young [R-CA-40]

Recent Actions

2026-06-30: Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 23.
2026-06-30: Committee Consideration and Mark-up Session Held
2026-06-18: Referred to the House Committee on Financial Services.
2026-06-18: Introduced in House
2026-06-18: Introduced in House

Bill Versions

SEC Reform and Restructuring Act — issued 2026-06-18 — PDF (35 pages)