Adequate comment periods on proposed rulemakings gives the public and various experts the time to “provide substantive analysis, warn of unintended negative consequences, and suggest alternative approaches with rationale for the SEC to consider. This commentary helps refine and improve adopted rulemakings—and in some cases provides a basis for the SEC to rethink or scrap imprudent rulemakings entirely,” McHenry and Toomey wrote.
Even President Obama’s White House “appropriately recognized” that public comment periods on most rulemakings should be at least 60 days, they said.
The lawmakers requested that Gensler to respond in writing to their requests by January 24 and explain what changes he intends to make regarding comment periods going forward. The SEC did not immediately respond to a request for comment.