Waco Reporter

Washington, D.C.– Today, Congressman Pete Sessions (TX-17) and Congressman Vicente Gonzales (TX-34) introduced H.R. 6783, the Capital Markets Financing and Economic Growth Investments Act of 2023. The act aims to bring significant enhancements to the financial regulatory framework, focusing on protecting investor choices and increasing flexibility within the U.S. capital markets.

One of the key features of the proposed legislation is the revamping of money market fund regulations. The Act seeks to amend the Investment Company Act of 1940 to allow for a stable share price by using the amortized cost method for portfolio valuation. Congressman Sessions explains that this flexibility extends to all investor and fund types, restoring the ability of all investors to use prime and municipal money market funds for cash management in addition to U.S. government funds. This change is expected to increase available credit to finance the private economy, potentially by Trillions, without inflationary measures.

Another important aspect of the legislation is the relief from mandatory liquidity fee requirements for money market funds. By opting for new pricing methods, these funds will be exempt from existing mandatory liquidity fee requirements. This exemption aims to encourage more dynamic and responsive market practices.

The proposed legislation also seeks to protect registered open-end companies from mandatory pricing adjustments or transaction fee impositions by regulatory authorities. This measure is designed to ensure a more equitable and stable investment landscape.

While the Act sets out these prohibitions, it also acknowledges the importance of flexibility. Registered open-end companies will have the freedom to adopt voluntary measures related to asset value adjustments and shareholder transaction fees.

Congressman Sessions emphasizes the significance of the Capital Markets Financing and Economic Growth Investments Act of 2023, stating, "This legislation is meticulously crafted to ensure a harmonious blend of robust investor protection and enhanced market flexibility. Our goal is to catalyze economic growth while fortifying investor confidence. By modernizing regulations and providing more leeway for market dynamics, we are paving the way for a thriving, resilient, and adaptable financial landscape that is crucial in today's rapidly evolving global economy."

Congressman Gonzalez also highlights the bipartisan nature of the legislation and its importance in bringing balance back to the financial markets. He explains, "This bill acknowledges that broad stroke legislation and regulations are not one size fits all and will allow flexibility while ensuring investor protection."

With the introduction of H.R. 6783, Congressman Sessions and Congressman Gonzalez are taking a significant stride toward course-correcting the U.S. financial system. The proposed legislation aims to create a financial landscape that promotes economic growth, investor protection, and market flexibility.

Click this link to access more information: https://sessions.house.gov/2023/12/congressman-sessions-introduces-legislation-to-protect-investor-autonomy-and-enhance-market-flexibility