Stop Agency Fiat Enforcement of Guidance Act; SAFE Guidance Act
Summary
The Stop Agency Fiat Enforcement of Guidance Act (SAFE Guidance Act) aims to increase transparency and limit the binding authority of financial agency guidance. It mandates that financial agencies include a 'guidance clarity statement' on all guidance documents issued after the Act's enactment. This statement clarifies that the guidance does not have the force of law and is not binding on the agency or the public.
Expected Effects
This act would change how financial agencies issue guidance by requiring a disclaimer. This would likely reduce the impact of agency guidance on regulated entities. It could also lead to more litigation as parties dispute the interpretation of regulations.
Potential Benefits
- Increased transparency in financial agency guidance.
- Reduced potential for agencies to overstep their regulatory authority.
- Greater clarity for regulated entities regarding their obligations.
- May foster a more collaborative relationship between agencies and the public.
- Could reduce the burden of compliance on businesses.
Most Benefited Areas:
Potential Disadvantages
- May weaken the ability of agencies to effectively enforce regulations.
- Could lead to increased litigation and uncertainty.
- May create loopholes for regulated entities to exploit.
- Could slow down the implementation of important policies.
- Potential for inconsistent application of regulations across different agencies.
Constitutional Alignment
The Act aligns with constitutional principles of due process and separation of powers by ensuring that agencies do not create de facto regulations without proper legislative authority. Article I, Section 1 vests all legislative powers in Congress, and this Act reinforces that principle by limiting the power of agencies to create binding rules through guidance documents. The requirement for a clarity statement promotes transparency and prevents agencies from circumventing the formal rulemaking process outlined in the Administrative Procedure Act, which is rooted in the Constitution's emphasis on fair and open governance.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).