The Quest to Make the SEC a ‘Universal Regulator’

Disclosure rules are already burdensome, and a new proposal could invite abuse. 

Letter to WSJ.

"While it is premature to judge the merits or validity of the proposal outlined in “SEC Eyes Stronger Oversight of Private Firms” (Page One, Jan. 11), some of the apparent motives are troubling. The Securities and Exchange Commission was established to administer securities laws for investor protection, orderly markets and capital access. Labor and environmental issues are important, and may be legitimate for regulation, but not by the SEC.

Using the SEC as a universal regulator draws resources away from the critical functions and core areas of responsibility entrusted to it by Congress. It also invites abuse if constituencies across the political spectrum come to see securities law as a legitimate tool for achieving their desired ends. Such an outcome would politicize securities law to the detriment of investors, the SEC and the country.

Brian Knight

Mercatus Center

Arlington, Va."