Commission on the Regulation of U.S. Capital Markets in the 21st Century - Report and Recommendations

 

 

 Download the executive summary (PDF, 700k)

 

 Download the full report (PDF, 2MB)

 

 

 

The U.S. capital markets have long provided tremendous advantages to our economy. They have supplied growing companies with much-needed access to capital—and have given millions of investors the opportunity to share in the wealth created by these companies. More than half of all U.S. households—57 million according to a recent survey—participate in our markets through either stocks or mutual funds, and the health and competitiveness of these markets have an immediate and direct effect on the broader economy, as well as on the wealth and prosperity of the American people.

 

Unfortunately, the competitive position of our capital markets is under strain—from increasingly competitive international markets and from the need to modernize our legal and regulatory frameworks. Over the last two decades, markets have truly become global—corporations, accounting firms, investment banking firms, law firms, and now stock exchanges—all have internationalized. Yet, the U.S. regulatory structure is deeply rooted in the reforms put in place in the 1930s, a period that was closer in time to the Civil War than it is to today.

 

The Commission believes that with quick and decisive adjustments in the U.S. legal and regulatory framework, U.S. government regulators and market participants will be better positioned to ensure that U.S. investor and business interests are best served in the global marketplace. To better protect investors and promote capital formation, the Commission is setting forth a series of recommendations that would significantly improve the U.S. position in the global markets. These recommendations can be implemented quickly and without overly burdensome costs.

 

To read the recommendations, please download the executive summary (PDF) or the full report (PDF).