June 3, 2022

The Honorable Pat Toomey
Ranking Member
Senate Committee on Banking, Housing, and Urban Affairs
455 Dirksen Senate Office Building
Washington, DC 20510

Dear Ranking Member Pat Toomey,

The Securities Industry and Financial Markets Association (“SIFMA”)1 would like to express our appreciation for your focus on developing legislation to boost economic growth, encourage job creation, and support entrepreneurs by improving our securities laws and regulations with the introduction of the JOBS Act 4.0 discussion draft. The U.S. capital markets are the deepest, most liquid, and most efficient in the world, providing the funding for over 70% of all economic activity in the U.S. These markets not only enabled our financial system to weather the extreme volatility throughout the COVID-19 pandemic, but also serve as a source of strength during times of severe stress by keeping liquidity in the market, providing businesses with much-needed financing, continuing to serve and advise clients, and ensuring timely clearance and settlement activities.

Recognizing the critical role the U.S. capital markets play in our economy, SIFMA was pleased to strongly support the passage of the original JOBS Act in 2012. Now 10 years later, that legislation made great strides in reducing regulatory burdens that too often stand in the way of growth and innovation for businesses. As a result, with the ever-continuing evolution of our markets and market participants, we believe that the time is ripe for the U.S. Congress to examine legislative solutions and proposals that will adequately tailor securities regulations to facilitate improved access to the U.S. capital markets.

We would like to thank you and members of the Committee for leading a deliberative, transparent, and inclusive process of soliciting robust public input and for your focus on developing solutions to issues that impact main street Americans as well as small and mid-sized businesses. This stands in stark contrast to the approach taken by the Securities and Exchange Commission (“SEC”) in recent months. In the first quarter of this year, the SEC issued more than one new rule proposal per week, most of which provided excessively short public comment periods. While we support the goals behind several new rule proposals, we believe that others will have adverse effects on American investors and businesses that undermine the SEC’s important mission, are unworkable as proposed, and have diverted limited resources away from more time-sensitive priorities. As an executive agency, the SEC is charged with faithfully executing the laws that Congress enacts, so it is commendable when legislators proceed as thoughtfully as you have on these issues.

1 SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. For more information, visit http://www.sifma.org.