The Financial CHOICE Act has been designed as an alternative to the 2010 Dodd-Frank Act and “includes several provisions of importance to manufacturers,” according to Shopfloor, NAM’s blog. Complying with the burdensome aspects of the Dodd-Frank’s requirements has been challenging and costly to manufacturers, NAM says.
One of the most burdensome aspects of Dodd-Frank is the requirement for conflict minerals disclosure. The widespread use of the minerals covered by the rule – including tungsten, tantalum, tin and gold – makes it costly for manufacturers to ensure compliance as they navigate the depth and complexity of their supply chains.
Large manufacturers are not the only ones suffering from Dodd-Frank, NAM claims. Small and medium-sized businesses are being asked by their customers to conduct the due diligence required by the rule, though the small companies themselves are not subject to the reporting requirements.
The new administration had promised to dismantle Dodd-Frank, but that has become increasingly unlikely, according to The Hill. Now, Republican lawmakers are focusing on replacing it with the Financial CHOICE Act, which contains significant changes.
But while the House Financial Services committee is expected to advance the bill to the House floor, analysts say the bill is unlikely to make it to Trump’s desk, writes Business Insider.