A Republican amendment to improve a Dodd-Frank rule on derivatives was withdrawn on Tuesday after Democrats agreed to compromise on regulations for the $601 trillion swaps market.
Sen. Mike Crapo (R-Idaho), the sponsor of the amendment, said that his Democratic colleagues, including Sen. Debbie Stabenow (D-Mich.), “have indicated a willingness to help try and achieve these objectives,” Crapo said, BusinessWeek.com reports.
Stabenow’s willingness to cooperate with Crapo is critical because she chairs the Senate Agriculture Committee that oversees the Commodity Futures Trading Commission that is writing the swaps market rules.
The amendment directed financial regulators to conduct in-depth analysis on the impact of their rulemaking, specifically on how a new rule would impact the economy as well affect the U.S.’s competitiveness internationally.
Crapo’s language restricted Dodd-Frank implementation funding for the CFTC until such assessments were made on its rules. The amendment also limited the commission’s reach into foreign subsidiaries and restricted the commission’s ability to require corporate end-users, BusinessWeek.com reports.
“I focus on the CFTC to send a strong message to all regulators involved in the rulemaking process that we cannot afford regulations that unnecessarily burden our businesses, our economy, and our competitive position in the global marketplace,” Crapo, a senior member of the Banking Committee, said in late Oct. when he had introduced his amendment, BusinessWeek.com reports.
Crapo’s withdrawal came the day after both House Democrats and Republicans approved a bill offered by Reps. Scott Garret (R-N.J.) and Jim Himes (D-Conn.) that restricted Dodd-Frank’s rule on U.S. banks’ transactions with foreign entities.