Dodd-Frank Act opponents are taking their fight against the new financial regulations to court instead of waiting for Congress to pass repeal legislation.
A ruling by a District of Columbia circuit court last summer found that the Securities and Exchange Commission failed to determine the likely economic impact of a new regulation. Once the rule was thrown out, opponents began preparing new challenges to the law, Politico.com reports.
Harvard University law professor Hal Scott said that the goal of future court challenges should be to reduce the costs of new regulations.
Dodd-Frank supporters say that a price cannot be put on the benefits of the new rules that are meant to eliminate the chances of another financial crisis, according to Politico.com.
The SEC began heavily increasing its staff in its new Division of Risk, Strategy and Financial Innovation after the court ruling. The division was created in 2009 in order to examine the economic impact of its rules.
The commission has requested additional spending funds from Congress in order to pay for the new hires. The Republican-controlled House, however, has been reluctant to increase spending on regulatory agencies.
House Republicans want precise quantification of the costs and benefits of Dodd-Frank rules. The data to make the assessments, however, either doesn't exist or is kept in the hands of market participants who refuse to share valuable intelligence, Politico.com reports.