As the US Securities and Exchange Commission gears up for an expected liberalization of the rules that govern how companies raise capital, the commission's lone Democrat on Saturday urged the agency to tread carefully and avoid unduly harming investors.
In her first speech since Republican President Donald Trump won the White House, SEC Commissioner Kara Stein raised concerns about possible unintended consequences that could result if disclosure rules are whittled down. "Capital finds it best uses when a wide range of participants can fairly weigh relevant, reliable information," Stein said, in prepared remarks at the Practising Law Institute's annual "SEC Speaks" conference.
"Does the move to opacity impact the effectiveness and efficiency of our capital formation process? Is there sufficient transparency or should we be considering a different foundational principle?" Stein asked.
Trump has promised broadly that he will work to scale back regulations that many corporations and fellow Republicans say stifle jobs and economic growth.
Stein's comments come as the SEC waits for the US Senate to confirm Trump's pick of Jay Clayton as the agency's new chair.
Clayton, a dealmaking attorney on Wall Street, has privately conveyed ideas to Trump and the White House about ways to spur capital formation.
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