This registration order reflects the staff’s efforts to address my concerns with respect to staff no-action letters of general applicability and the requirements under the Administrative Procedure Act.[1] I appreciate the diligent work by the Division of Market Oversight and the Legal Division. 

I believe that Commission action—not delegated staff action—is required to properly amend or repeal existing Commission regulations.  Accordingly, I believe it is more appropriate to impose direct conditions in an order of registration—rather than indirect conditions incorporated by reference to a staff no-action letter—because the order, at least, has been approved by Commission action requiring an affirmative vote of the majority of the Commission.  It would be even more appropriate to utilize the Commission’s rulemaking authority[2] or exemptive authority[3] to provide relief from rule requirements. 

It has been over 10 years since the Dodd-Frank Act was passed.   We must finally take action to fix unworkable rules by codifying “perpetual” no-action relief through notice-and-comment rulemaking as required by the Administrative Procedure Act. We must be as demanding on ourselves as we are on our registered entities and registrants—we must put in the hard work to comply with the letter of the law.

[1] Administrative Procedure Act, 5 U.S.C. § 553(b) (2006).

[2] See 7 U.S.C. § 12a(5).

[3] See 7 U.S.C. § 6(c).