Litigation could stymie efforts by the Securities and Exchange Commission to comply with sweeping executive orders intended to roll back financial regulations.
President Donald Trump on Friday took the first step in expunging the 2010 Dodd-Frank financial overhaul act, which he said hinders business and economic growth.Mr. Trump signed an executive action requiring the U.S. Treasury Department to develop an outline for scaling back financial regulations.The SEC doesn’t have the authority to revoke Dodd-Frank, which is an act of Congress. Nearly 80% of rules under the law are already implemented. Instead, the commission can offer relief by amending its rules, or granting exemptions—a process that is open to judicial review.
Any legal objections could slow the SEC’s already lengthy amendment process, hindering the agency’s ability to execute the president’s executive order, legal experts and former SEC staff said.
“This is not going to be simple, fast or cheap,” said Joseph Grundfest, a Stanford professor of law and business who served as a Democrat SEC commissioner during the Reagan administration.