Sen. Mike Crapo (R-Idaho) criticized the Dodd-Frank Act during a recent hearing before the Senate Banking, Housing and Urban Affairs Committee, saying that the rules are overly complex, “offering confusing and often contradictory standards and regulatory proposals.”
Crapo stressed the importance of cost-benefit analysis, adding that Congress needs “answers to critical questions.”
“First, what are the anticipated cumulative effects of these new rules to credit, liquidity, borrowing costs and the overall economy?” Crapo said. “Second, what have the agencies done to assess how these complicated rules will interact with each other and the existing regulatory framework? And third, what steps are being taken to fix the lack of coordination and harmonization of rules among the U.S. and international regulators on cross-border issues?”
Crapo noted “bipartisan concern” that some of the Dodd-Frank rules are overreaching and require technical fixes.
“A good starting point is to fulfill Congressional intent by providing an explicit exemption from margin requirements for non-financial end-users that qualify for the clearing exemption,” Crapo said. “Unless Congress acts, the new regulations will make it more expensive for farmers, manufacturers, energy producers and many small business owners across the country to manage their unique business risks associated with their daily operations.”