Bill · S. 3935· Senate(119-S-3935)
Municipal Securities Rulemaking Board Reform Act of 2026
- Introduced
- 2/26/2026
- Last activity
- 2/26/2026 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- John Kennedy
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Municipal Securities Rulemaking Board Reform Act of 2026 seeks to amend the Securities Exchange Act of 1934. The bill clarifies the membership composition and appointment process for the Municipal Securities Rulemaking Board. It establishes specific requirements for regulated representatives and public representatives to serve on the Board. Additionally, it defines the authority and rule-making responsibilities of the Board. The legislation also addresses the oversight of municipal securities brokers, dealers, and advisors.
Yes
Does this give people more protection from unfair business practices?+5
The bill strengthens protections for investors and municipal entities through enhanced board oversight and transparency.
Does this make what the government does easier for the public to see?+4
The bill improves transparency by establishing clearer membership and oversight structures for the Board.
Does this give the federal government more power?+3
The bill clarifies the authority of the SEC and the Board to oversee municipal securities markets.
The opposite
Does this make it easier to run a small business?-2
The bill imposes new regulatory standards and potential costs that could burden smaller municipal advisors.
Would business owners be better off under this?-2
Financial industry participants face increased regulatory and compliance obligations.
Who it would affect, and how
Potential Positive Impacts for People
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Board Integrity and Expertise: The bill requires Board members to be individuals of "integrity and reputation" with experience in matters affected by municipal securities markets (Section 2(a)(1)(B)(i)). This ensures that those overseeing the markets are qualified and trustworthy.
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Public Representation: The bill mandates that the Board include "public representatives," including at least one representative for retail investors, one for municipal entities, and one member of the public (Section 2(a)(1)(C)(ii)). This provides a voice for non-industry participants.
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Investor and Entity Protection: The Board is tasked with creating rules designed to "protect investors, municipal entities, obligated persons, and the public interest" (Section 2(a)(2)(B)).
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Prevention of Misconduct: Rules may be designed to "prevent fraudulent and manipulative acts and practices" (Section 2(a)(2)(B)).
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Standardization of Qualifications: The Board can establish standards for "training, experience, competence, and such other qualifications" for those involved in the business to protect investors and municipal entities (Section 2(a)(2)(A)).
Potential Negative Impacts for People
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Regulatory Burdens: The Board has the authority to require "periodic examination" of brokers, dealers, and advisors to determine compliance (Section 2(a)(2)(D)).
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Potential Costs for Industry Participants: Municipal securities brokers, dealers, and advisors are required to pay "reasonable fees and charges" to the Board to cover operating and administrative costs (Section 2(a)(2)(I)).
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Regulatory Burdens on Small Entities: While the bill states that regulatory burdens on small municipal advisors should not be unnecessary, the Board still maintains the authority to prescribe professional standards and continuing education requirements (Section 2(a)(2)(K)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Improves Government Transparency+4Increases Federal Power+3
- Economy And Finance
- Improves Consumer Protection+5Improves Small Business Support-2
- Demographic And Interest Groups
- Good For Business Owners-2
- 2/26/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Introduced in Senate