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67
OVERREGULATION?
How
Regulation
Will
Increase
Over
the
Next
Decade
In response to the financial crisis of 2008, Congress passed the
Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 ("Dodd-Frank"), the most sweeping and
comprehensive financial services legislation since the 1930s.
One of the central features of Dodd-Frank was the creation of
the Consumer Financial Protection Bureau (CFPB), a single federal agency
responsible for all consumer protection functions. More importantly, Dodd-
Frank essentially re-defined the existing regulatory structure by changing the
roles of the various regulators, the scope of industries they regulate, and the
tools they use to identify future problems. is structural change has led—
and will continue to lead—to a dramatic increase in the scope and level of
regulation in the financial services industry.
WHO REGULATES? LIMITATIONS TO
EXEMPTIONS OF STATE LAW
"It is one of the happy incidents of the
federal system that a single courageous
State may, if its citizens choose, serve as
a laboratory; and try novel social and
economic experiments without risk to the
rest of the country."
is concept – with the states operating as
laboratories of democracy, experimenting with
new laws and policies – was described in 1932 by
U.S. Supreme Court Justice Louis Brandeis in
the case New State Ice Co. v. Liebmann. Prior
to Dodd-Frank, many state laws attempting
to regulate the activity of national banks were
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