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Hensarling: Next financial regulation package will not focus on Dodd-Frank

House Financial Services Committee Chairman Jeb Hensarling, R-Texas, says a second financial regulatory relief bill will focus on capital formation, not banking.

At a speech May 17, Hensarling acknowledged the difficulty in getting moderate Senate Democrats to support another piece of legislation proposing rollbacks in banking regulations. But he said bills concerning barriers to entrepreneurship and launching initial public offerings should have enough bipartisan support to bring in enough Democratic votes to pass the Senate.

"If the Senate wants to essentially be done with the banking portion, fine," Hensarling said.

Under Hensarling's leadership, the House Financial Services Committee has churned out an array of capital markets-focused legislation, many pieces of which address Securities and Exchange Commission rules on angel investors, money market fund prices and securities registration requirements.

Hensarling said he would like to see a bill package that resembles the Jumpstart our Business Startups Act, commonly called the JOBS Act, which was signed into law by former President Barack Obama.

Earlier in the month, GOP leadership in the House said it had secured a commitment from Senate Majority Leader Mitch McConnell, R-Ky., to mint a new financial regulatory package as long as the House passes the Senate's pending Dodd-Frank relief bill without changes. The House is scheduled to vote on the package, known as S.2155, on May 22.

The Senate package already includes a number of provisions concerning capital formation, many of which were inserted by Hensarling during amendment negotiations in March. The bill would require the SEC to conduct a study on algorithmic trading, revise the threshold for a qualifying venture capital fund and raise the reporting threshold for changes to compensatory benefit plans.

Hensarling lamented that he was not able to add more House-approved bills into the Senate package, saying that House leadership overrode his preference to go to conference in order to assure that Dodd-Frank reform would end up on President Donald Trump's desk.

"I've gone from saying 'Over my dead body,' to 'Let's get it done yesterday,'" Hensarling said.