Bill > S3935

This bill, titled the "Municipal Securities Rulemaking Board Reform Act of 2026," aims to clarify the composition of the Municipal Securities Rulemaking Board (MSRB), which is responsible for creating rules for the municipal securities market. The bill proposes to amend the Securities Exchange Act of 1934 to establish a 15-member board, though the Securities and Exchange Commission (SEC) can alter this number as long as it remains odd. A majority of the board members must be "regulated representatives," meaning they are associated with brokers, dealers, or municipal advisors, with specific numbers designated for those associated with non-bank brokers/dealers, bank-affiliated dealers, and municipal advisors. The remaining members will be "public representatives" who have not been associated with these entities for at least five years, including representatives of investors and municipal entities. The bill also outlines procedures for appointing board members, filling vacancies, and sets a three-year term limit for most members, with provisions for an interim board and the SEC's authority to remove members. Furthermore, it details the MSRB's rule-making authority, emphasizing standards for operational capability, training, and competence for market participants, preventing fraudulent practices, promoting fair markets, and protecting investors and municipal entities. The bill also includes provisions for arbitration of disputes, periodic examinations of market participants, rules for quotations, record-keeping, defining "separately identifiable department or division" for banks, and establishing fees for board operations, while also allowing for guidance and enforcement assistance to regulators and mandating meetings between the MSRB, SEC, and other relevant bodies to share information on regulation and enforcement. Finally, it requires the SEC to adopt data standards for information submitted to the MSRB, ensuring compatibility with existing financial stability data standards and consulting with market participants.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/3935/all-info