Business Owners Protection Act of 2025

Bill Summary: Business Owners Protection Act of 2025 (S. 1806)

Overview

The Business Owners Protection Act of 2025 is a targeted legislative proposal designed to limit the regulatory reach of the Securities and Exchange Commission (SEC). The primary intent of the bill is to eliminate "unused" authorities granted to the SEC under the Dodd-Frank Wall Street Reform and Consumer Protection Act, effectively preventing the Commission from introducing new regulations based on old, untapped discretionary powers.

Key Provisions

Termination of Discretionary Authorities

The bill amends the Securities Exchange Act of 1934 to terminate specific SEC authorities that meet the following three criteria:
1. Origin: The authority was established pursuant to the Dodd-Frank Act.
2. Nature: The authority provides the SEC with the discretion to decide whether or not to establish a requirement for private entities.
3. Inactivity: The SEC had not issued a notice of proposed rulemaking (under the Administrative Procedure Act) or a guidance document regarding that authority prior to January 1, 2025.

If an authority meets all these criteria, it is terminated immediately upon the enactment of the bill.

Scope of Application

The bill clarifies that this termination applies not only to direct mandates within the Dodd-Frank Act but also to any authorities created through amendments that the Dodd-Frank Act made to the Securities Exchange Act of 1934.

Transparency and Reporting

To ensure accountability and public awareness, the bill requires the SEC to:
* Create a comprehensive list of every authority that was terminated under this Act.
* Submit this list to Congress and make it available to the general public.
* Complete this reporting requirement within 180 days of the bill's enactment.

Who is Affected?

• The Securities and Exchange Commission (SEC): The SEC would lose the ability to exercise certain discretionary powers that it has not yet acted upon, limiting its capacity to create new rules derived from the Dodd-Frank framework.
• Private Entities and Business Owners: By removing the threat of "dormant" regulatory authorities being activated, the bill aims to provide greater regulatory certainty and reduce the potential for unexpected compliance burdens on businesses.
• Congress: The legislative body would receive a formal accounting of the specific powers being removed from the SEC's toolkit.

Procedural Status

• Introduced: May 19, 2025
• Current Status: The bill has been read twice and referred to the Committee on Banking, Housing, and Urban Affairs.