Yesterday afternoon, the House voted on H.R. 78, the SEC Regulatory Accountability Act.

The bill passed by a vote of 243 to 184, and I voted for it. Let me explain.

This is a fairly straight-forward regulatory accountability bill specific to the Securities and Exchange Commission (SEC), which had its authority to regulate securities markets greatly expanded under Dodd-Frank. Essentially, it brings the SEC into compliance with President Obama’s Executive Order 13563, issued in January 2011, which reaffirmed requirements that agencies conduct a cost-benefit analysis of regulatory proposals with public participation.

The bill would direct the SEC to consider whether a proposed rulemaking would promote efficiency, competition, and capital formation while imposing the minimum burden possible. It would also require the Commission to assess which regulatory approach would most benefit society, including the approach of not regulating at all.