Washington, D.C.– Today, Congressman Pete Sessions (TX-17) introduced H.R. 6783, the Capital Markets Financing and Economic Growth Investments Act of 2023. As well, Congressman Vicente Gonzales (TX-34) co-introduced the pivotal piece of legislation. The act is set to bring significant enhancements to the financial regulatory framework, focusing on protecting investor choices and increasing flexibility within the U.S. capital markets.

Key Features of the Proposed Legislation:

• Revamping Money Market Fund Regulations:  The Act amends the Investment Company Act of 1940 to codify to opt for a stable share price by using the amortized cost method for portfolio valuation. This flexibility extends to all investor and fund types, thereby restoring the ability of all investors to use prime and municipal money market funds for cash management in addition to U.S. government funds. Enabling stable value prime and municipal money market funds will increase available credit to finance the private economy, potentially by Trillions, without inflation money printing by the Federal Reserve or deficit spending by Congress.
• Relief from Mandatory Liquidity Fee Requirements: A pivotal aspect of the proposed legislation is the exemption of money market funds, opting for these new pricing methods, from the existing mandatory liquidity fee requirements. This exemption aims to encourage more dynamic and responsive market practices.
• Restriction on Imposing Mandatory Pricing or Fees: The proposal seeks to protect registered open-end companies from mandatory pricing adjustments or transaction fee impositions by regulatory authorities. This measure is designed to ensure a more equitable and stable investment landscape.
• Encouragement of Voluntary Compliance: While the Act sets out these prohibitions, it also acknowledges the importance of flexibility by allowing registered open-end companies the freedom to adopt voluntary measures related to asset value adjustments and shareholder transaction fees.

"The introduction of the Capital Markets Financing and Economic Growth Investments Act of 2023 is a significant stride toward course correcting the U.S. financial system. This legislation is meticulously crafted to ensure a harmonious blend of robust investor protection and enhanced market flexibility. Our goal is to catalyze economic growth while fortifying investor confidence. By modernizing regulations and providing more leeway for market dynamics, we are paving the way for a thriving, resilient, and adaptable financial landscape that is crucial in today's rapidly evolving global economy," said Congressman Pete Sessions.

"This bipartisan legislation brings balance back to our financial markets by expanding access to credit for investors, increasing cash flow without increasing inflation. This bill acknowledges that broad stroke legislation and regulations are not one size fits all and will allow flexibility while ensuring investor protection,” said Congressman Gonzalez.