McHenry: Republicans and Democrats Can Work Together on Sound Policy


Date: July 28, 2021
Location: Washington, DC

Today, the House Financial Services Committee is holding a markup of several pieces of legislation, including two Republican-led, bipartisan bills. The Committee will also consider several partisan Democrat proposals that limit opportunities for everyday investors and do nothing to address the mismanagement of the Emergency Rental Assistance programs by the Biden Administration.

Watch Republican Leader Patrick McHenry's (NC-10) opening remarks here.

Read Republican Leader McHenry's opening remarks as prepared for delivery:

"Thank you, Madam Chair, for holding this markup.

"I would also like to thank you for the prompt response to my letter urging you to include Republican bills in markups.

"There are two Republican bills on today's roster: Mr. Huizenga's H.R. 935, the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2021, and Mrs. Wagner's H.R. 2265, the Financial Exploitation Prevention Act of 2021.

"Each of these bills reflects good, sound policy. H.R. 935 ensures that small businesses are not forced to waste already scarce resources on burdensome regulations -- resources that can be used to employ additional workers or make capital investments.

"H.R. 2265 takes another step toward stopping bad actors who want to exploit seniors or otherwise mentally or physically impaired Americans. This committee has been focused on addressing elder fraud -- so I thank the Chair for including this bill as another way to combat financial exploitation.

"These bills -- along with H.R. 4590, the Promoting New and Diverse Depository Institutions Act, introduced by Mr. Auchincloss; demonstrate that Republicans and Democrats can work together on sound policy.

"I wish I could end my remarks here, but the rest of the bills attached to today's markup are not bipartisan or based in sound policy.

"This Committee held three hearings earlier this year to examine the so-called GameStop saga. Democrats have a list of bills on the agenda today to "respond" to these events. This is a missed opportunity.

"Today we'll consider a bill on payment for order flow. On its face the bill is "just" a study. In reality it is Democrats' attempt to get one step closer to banning payment for order flow, a practice that the SEC has long allowed and has helped lead to commission-free trading.

"We'll consider a bill to "create greater transparency with respect to 13F disclosures." Yet, what this is really is -- is a significant expansion of the 13F reporting regime for topics that the SEC has either already addressed or has the authority to address.

"We'll consider a bill that prohibits trading ahead by market markers even though the practice is already illegal. There is no ambiguity on this point, and the Commission and the Department of Justice have the authority to pursue and prosecute bad actors.

"Instead of coming up with half-baked solutions for perceived problems, we should be working together to empower everyday investors to make decisions that are best for them.

"Policies, like the "accredited investor" definition, blatantly pick winners and losers; if you're wealthy, you're good to go; and, if you're not, the government needs to protect you. We should be chipping away at this outdated investment regime.

"In fact, today, Republicans will introduce a series of bills that expand investment opportunities for everyday Americans.

"It's time that we get serious about equity and ownership in the American economy.

"Finally, Madam Chair, we'll markup H.R. 3332 -- a bill that authorizes $500 million dollars over five years for manufactured housing.

"I don't think I need to remind my colleagues that, according to the National Low Income Housing Coalition, we have a "five alarm fire' on our hands. The eviction moratorium expires this week. Less than seven percent of the $46 billion in emergency rental assistance has made it into the hands of families in need. This is a failure.

"Instead of marking up Republicans' Renter Protection Act, which gets the $46 billion appropriated by Congress to renters immediately, Democrats want to focus on authorizing $500 million for manufactured housing. Democrats' priorities here don't add up.

"I'll end where I started. I appreciate the Chair's willingness to include Republican bills on the agenda and I look forward to working with you and Committee Democrats on solutions that are grounded in sound policy.

"I yield back."