Rep. Hensarling Shares Draft of Bill to Replace Dodd-Frank

The new CFOC should have a dual mission of consumer protection and competitive markets, with a cost-benefit analysis of rules performed by an Office of Economic Analysis, he says. The Act also would replace the current CFPB's single director with a bipartisan, five-member commission subject to congressional oversight and appropriations.

Additional reforms in the Act include repealing sections and titles of Dodd-Frank that limit capital formation, such as the Volcker Rule, and getting rid of the SEC's authority to "both prospectively and, possibly, retroactively eliminate or restrict securities arbitration."

Americans for Financial Reform balked at the Act, explaining in a statement on Thursday that the legislation "contains so many unprecedented gifts to the financial industry that it would make financial regulation even weaker than it was before the crisis."

For example, AFR says that "although the plan would increase the maximum penalty the SEC can levy for administrative violations, it also contains a half a dozen provisions that would undermine the SEC's ability to successfully mount such a case. So even though penalties could be higher if a case succeeded, the bill would make success even rarer than it already is."