SEC Chair Nominee Jay Clayton's Hearing to Be Held on March 23

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WASHINGTON – Jay Clayton, President Trump's nominee for chair of the Securities and Exchange Commission, will appear before the Senate Banking Committee for a confirmation hearing on March 23, according to the panel.

Clayton, a Wall Street lawyer with seemingly little experience in the municipal market, is widely seen as someone who will work with the Trump administration to focus on deregulation where possible.

Trump has already issued executive orders mandating that executive departments and agencies repeal two rules for the adoption of every new rule that imposes costs. They also direct the Treasury secretary to meet with major financial regulators, including the SEC, and report on what Dodd-Frank Act provisions are working and not working.

House Financial Services Committee chair Jeb Hensarling, R-Texas, is also expected to further try to change the financial regulatory arena by reintroducing his Financial CHOICE Act, which was created as an alternative to Dodd-Frank. Hensarling introduced a version of the bill last session but has said he plans to revise it before proposing it again.

Municipal market participants have consistently said they are concerned about the high cost and cumulative impact of implementing and complying with many new regulations that the Municipal Securities Rulemaking Board and SEC have adopted over the last several years, some under Dodd-Frank provisions. Clayton also is expected to focus on the capital formation portion of the SEC's mission if the Senate confirms him.

While he has received general praise from Republicans including Senate Banking Committee chair Mike Crapo, R-Idaho, top Democrat Sherrod Brown, D-Ohio, and others have expressed concerns about Clayton's Wall Street ties and ability to protect investors.

If Clayton is confirmed, he will join a depleted SEC that is currently only working with two commissioners: acting chairman Michael Piwowar, a Republican, and Kara Stein, a Democrat.

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