XRP Army Praises Congressman For Introducing Bill To Protect Investors From SEC Gensler

U.S. Representative John Rose of Tennessee’s 6th district has introduced a new bill, H.R. 4657, designed to shield retail investors and retirement savings from the potential misuse of shareholder processes by activist shareholders and socially-directed investment funds.

The U.S. Securities and Exchange Commission (SEC) recently implemented Staff Legal Bulletin 14-L, which is the focus of the proposed legislation. This bulletin enables important social policy ideas, such as those addressing climate change, to be included in proxy statements without necessitating a direct relationship with the particular company in question. 

What Changes Does It Bring?

Concerns about these organizations’ ability to use proxy statements to further their political and activist objectives prompted the action. Since the aforementioned approach has made it simpler for activist shareholders to drive public firms into adopting stances on social and political issues, the bill is anticipated to be welcomed by traders.

Representative Rose vehemently disagrees with the SEC’s advisory and contends that instead of relying on government intervention, the American people’s preferences about company conduct or political viewpoints should be conveyed through their consumer choices and economic support. He thinks it is inappropriate for unelected SEC bureaucrats, such as Chair Gensler, to impose moral and social laws with such a hard hand.

Representative John Rose said in a statement, “The SEC is wrong every step of the way by issuing this bulletin. If the American people want companies to take certain actions or political positions, they will exercise those desires through their pocketbooks and consumer choices – not the heavy hand of government.” 

Retail Investors Sighs Relief

By preventing activist shareholders and socially-directed investment funds from using the shareholder process to further their political objectives, the proposed legislation, if implemented, would offer protections for retail investors and retirement assets. Additionally, it would lessen the arbitrary decisions made by SEC employees who are not elected when choosing which proposals to include in proxy statements.