Senate Clears Own Path with Dodd-Frank Reform
Following passage by the Financial Services Committee last week, legislation to significantly amend the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act is now slated to come before a full vote of the U.S. House of Representatives sometime in the future. House Democrats proposed a number of amendments to the Dodd-Frank replacement, dubbed the CHOICE Act, but all were defeated at the Committee markup and mostly along party lines.
With the House steamrolling ahead, the Senate is also beginning its own review of Dodd-Frank. Unlike the House where a simply majority can advance most legislation, any changes to Dodd-Frank in the Senate will likely require a 60 vote threshold, which means Republicans will need some Democratic support. Democrats on the Senate Banking Committee are already rallying together to protect the existing provisions of Dodd-Frank, highly reducing the likelihood that the sweeping changes encompassed by the CHOICE Act will survive to the President’s desk. With no definitive timetable for advancement, the fate of Dodd-Frank and the future status of the Consumer Financial Protection Bureau will remain in limbo.