Bill Overview
Title: SEC Economic Analysis Modernization Act
Description: This bill requires the Securities and Exchange Commission to periodically update its guidance on the use of economic analysis in rulemakings and to make such updates publicly available.
Sponsors: Rep. Steil, Bryan [R-WI-1]
Target Audience
Population: People involved in the securities market
Estimated Size: 30000000
- The bill impacts the Securities and Exchange Commission (SEC) by mandating periodic updates to its guidance on economic analysis for rulemakings.
- The SEC is a regulatory body that affects various stakeholders in securities markets, including investors, companies, and financial institutions.
- Economic analysis in SEC rulemakings can impact market operations, financial stability, and investor protections.
- The SEC operates primarily in the United States, impacting U.S. citizens and entities, but international investors and companies may also be affected due to the global nature of financial markets.
Reasoning
- The SEC Economic Analysis Modernization Act affects investors, financial institutions, companies, and individuals engaged in the securities market. This includes a diverse range of people from small individual investors to large corporations.
- The policy will likely have a varied level of impact on different stakeholders. While some might see direct benefits from improved economic analysis in rulemakings, others might be unaffected or even perceive negative impacts due to increased regulatory burdens.
- The $5,000,000 USD in year 1 and $29,000,000 USD over 10 years budget implies a moderate scope for the implementation of this policy, focusing primarily on updates and enhancements rather than large scale reforms.
- Considering a target population of 30 million Americans involved in the securities market, the impact will vary widely based on roles, financial involvement, and interest in regulatory changes.
- A broad section of the target population may notice a slight improvement in trust and stability in the market operations due to more refined regulatory processes.
Simulated Interviews
Investment Banker (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I believe any improvement in economic analysis at the SEC will aid in better management of regulations, indirectly benefiting the market as a whole.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Retired (San Francisco, CA)
Age: 62 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- Better SEC guidelines can safeguard my investments, reducing the worry about market volatility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Tech Startup Founder (Austin, TX)
Age: 30 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The updated economic analyses might mean more thorough and fair process when we go public.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 5 |
Pension Fund Manager (Chicago, IL)
Age: 53 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Enhanced SEC data means better decision-making capabilities for pension funds.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Small Business Owner (Miami, FL)
Age: 39 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Hope this will mean more opportunities and clarity for small businesses like mine.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Freelance Journalist (Boston, MA)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- The policy could provide more transparency and better raw material for my articles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Graduate Student (Seattle, WA)
Age: 26 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- Modernizing economic analysis is crucial for learning and applying real-world financial knowledge.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Corporate Lawyer (Houston, TX)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- This may add complexity initially but will lead to clearer guidelines for compliance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Retired Finance Executive (Denver, CO)
Age: 57 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The clarity in rules and regulations from the SEC is something I've long advocated for.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 8 | 8 |
Tech Investor (Los Angeles, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- This could mean enhanced predictive capabilities for tech market trends and regulatory impacts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 5 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $7000000)
Year 2: $4000000 (Low: $3000000, High: $6000000)
Year 3: $4000000 (Low: $3000000, High: $6000000)
Year 5: $4000000 (Low: $3000000, High: $6000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The SEC's capacity to integrate updated economic analysis recommendations effectively into rulemaking is a critical factor for this policy's success.
- Ensuring stakeholder engagement in the revision of guidelines could enhance the credibility and acceptance of updates.
- Market complexity and rapid innovations might necessitate more frequent updates than originally anticipated, especially under economic instability.