A bill to ensure the fairness, transparency, and consistency of disqualifying provisions administered by the Commodity Futures Trading Commission and the Securities and Exchange Commission, and for other purposes.
About This Bill
Committee
Latest Action · July 27, 2026
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
This bill changes how federal regulators automatically disqualify companies from financial industry participation. Currently, certain violations in securities and commodities laws can automatically trigger disqualification of entire companies from registration, licensing, or self-regulatory organization membership. The bill prohibits these automatic disqualifications for non-individual entities and instead requires the Commodity Futures Trading Commission and Securities and Exchange Commission to jointly develop new rules within one year of enactment that give regulators discretion to decide whether disqualification is necessary to protect investors. Under the new process, companies would have 30 days to notify regulators when an event occurs that could trigger disqualification, and regulators could only apply disqualifications if they determine it is necessary in the public interest, considering mitigating factors and whether the violation occurred in the specific legal entity and business line affected. The legislation aims to balance fairness and consistency in disqualification decisions across regulatory agencies while maintaining investor protections.
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