“Thoroughly hoping to take advantage of the fact that public attention is now focused on the budget and healthcare bill, House Republicans are moving substantially to weaken the regulation of derivatives, which Congress adopted in 2010,” Frank said regarding the financial reform law that bears his name, Reuters reports.
Frank added that should Democratic efforts to make amendments to the bills be overcome, he will ultimately urge the Senate and President Obama to repeal the legislation.
U.S. regulatory agencies are currently in the process of writing derivatives rules that would be used to regulate the $700 trillion global derivatives market, a top priority for proponents of the 2010 financial reform law. Some critics, however, have argued that increasing derivatives rules would reduce the ability of U.S. companies to compete globally, Reuters reports.
One of the bills, recently approved by the Financial Services Committee in March, seeks to reduce regulators’ ability to supervise derivatives transactions that are conducted by foreign branches of U.S. businesses.
The second bill would prevent the Commodity Futures Trading Commission and the Securities and Exchange Commission from interfering in trades and trade platforms.