Senate Banking Committee holds bipartisan hearing on capital formation

Chairman Scott opened the Senate Banking Committee hearing by framing capital formation as a Main Street issue and urging bipartisan action to help companies go public and expand investment opportunities for everyday Americans. "Opportunity should not be dictated by your ZIP code," he said, laying out a package of proposals and referencing the Empowering Main Street in America Act as a starting point.

Ranking Member Sen. Warren used her opening statement to warn that recent SEC changes and weakened enforcement have eroded investor protections, saying enforcement activity fell roughly 20% last year. "Corruption, corruption, corruption," she said, charging that current federal actions favor well-connected insiders over ordinary investors. Witnesses from law firms, industry groups and policy organizations testified in five-minute turns and then answered senators' questions on specific reforms and risks.