Six Recommendations for the CHOICE Act 2.0
President-elect Donald Trump has promised to get rid of the Dodd–Frank Wall Street Reform and Consumer Protection Act. Eliminating the law ultimately requires legislative action, so an obvious guide is the Financial CHOICE Act of 2016, a bill that replaces large parts of Dodd–Frank. The core elements of the CHOICE Act represent a major regulatory improvement because they help restore market discipline while reducing regulatory burdens. A key provision of the bill is the regulatory off-ramp, which provides regulatory relief to banks that choose to hold higher equity capital, thus improving their ability to absorb losses while reducing the likelihood of taxpayer bailouts.