The Treasury Department recommended Friday repealing parts of the Dodd-Frank financial regulatory law, including a requirement to disclose the pay gap between CEOs and their employees, saying lifting the rules will spur growth in capital markets.
“The U.S. has experienced slow economic growth for far too long,” said Treasury Secretary Steven T. Mnuchin. “By streamlining the regulatory system, we can make the U.S. capital markets a true source of economic growth which will harness American ingenuity and allow small businesses to grow.”
Treasury’s report recommends repealing four sections of Dodd-Frank, including the rule requiring companies to disclose CEOs’ total annual compensation, the median of total compensation of all employees and the ratio of those two amounts.
Congress approved Dodd-Frank in 2010 as a response to the Wall Street financial crisis, with strong backing from then-President Barack Obama.
The report also recommends repealing three Dodd-Frank provisions pertaining to mining and development of oil and natural gas, including a section requiring due-diligence disclosure of “conflict minerals” acquired from the Democratic Republic of the Congo or adjoining nations in Africa, where the mining of so-called “conflict diamonds” have raised concerns.
Treasury is recommending streamlining disclosure requirements for companies to reduce their costs, tailoring those requirements for companies going public based on their size, limiting new regulations and opening up private markets to more investors through pooled investments.
“Over the last 20 years, the United States has seen a nearly 50 percent decline in the number of publicly traded companies,” Treasury said in a statement. “The capital markets are a source of liquidity for small businesses as they grow, invest, and hire.”