Protecting Private Job Creators Act

H.R. 3959 would exempt fixed-income securities—such as corporate bonds and asset-backed securities—from SEC Rule 15c2-11, a regulation that requires broker-dealers to verify and publish certain information before quoting securities. The SEC originally applied this rule only to over-the-counter equity markets for decades, but reinterpreted it in 2020 to include fixed-income markets. The bill's supporters argue this reinterpretation was made without proper analysis of debt markets, which operate differently from equity markets, and that the rule's application would increase compliance costs and reduce market liquidity.

If enacted, the bill would provide permanent regulatory clarity for the fixed-income market, which businesses use to raise capital for operations and job creation. Supporters—including manufacturers, real estate firms, and financial industry groups—contend that the rule's application threatens capital formation and could result in significant job losses. The bill passed the House Financial Services Committee on a bipartisan 41-11 vote and is now eligible for a full House floor vote. The Congressional Budget Office estimates implementation costs would be negligible, with any SEC fee increases falling well below federal mandate thresholds.