Bills · S 3935
IN COMMITTEE· 119TH CONGRESS
Senate BillS 3935Finance and Financial Sector
Municipal Securities Rulemaking Board Reform Act of 2026
INTRO FEB 26· LAST ACTION FEB 26
READING
16MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it fundamentally reshapes the body responsible for regulating the municipal securities market, a crucial part of how state and local governments fund schools, roads, and other public projects. The composition of the MSRB dictates whose perspectives are prioritized when new rules are written or existing ones are revised. If this bill becomes law, it will establish a new balance between financial industry professionals and independent public representatives on the board, potentially influencing how market fairness, transparency, and investor protection are approached.
Voters should care because the rules set by the MSRB can impact the cost of borrowing for their local governments, affecting tax rates or the availability of funds for public services. It also affects the integrity and safety of the municipal bond market for individuals who invest in these bonds, including those in retirement funds. If this bill does not become law, the MSRB's current structure and appointment process would remain in place, meaning a different balance of perspectives would continue to guide its rule-making.
KEY PROVISIONS
4AI-extractedPROVISION 01
The bill mandates the MSRB will be composed of 15 members, unless the SEC specifies a different odd number, with a majority being from the municipal securities industry.
This provision fundamentally changes the size and the required proportion of industry versus independent members on the board, influencing the board's overall perspective.
PROVISION 02
It sets specific requirements for the composition of both 'regulated representatives' and 'public representatives,' including minimum numbers for different segments like non-bank brokers/dealers, bank-affiliated dealers, municipal advisors, investors, and municipal entities.
This ensures specific voices and types of expertise are represented on the board, aiming for a balanced but industry-majority perspective.
PROVISION 03
The Securities and Exchange Commission (SEC) is given the sole authority to appoint all MSRB members, including initial appointments within 180 days of enactment, and can remove any member at will.
This shifts significant power over MSRB leadership and direction to the SEC, potentially increasing federal oversight and control.
PROVISION 04
MSRB members will serve three-year terms, with initial terms staggered to ensure continuity, and interim members can be appointed during the transition.
This establishes clear term limits and a structured transition plan for the new board, aiming to maintain operational stability.
SPONSORSHIP
1 + 0
R· Louisiana
YRS IN OFFICE
9
BILLS LED
84
ACTION TIMELINE
2 EVENTSFEB 26
Introduced in Senate
FEB 26
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
BILL INFO
TypeSenate Bill
NumberS 3935
Congress119th
StatusIn Committee
IntroducedFeb 26, 2026
Last actionFeb 26, 2026
READER REACTIONS
OVERALL SENTIMENT
No reactions yet. Be the first to weigh in.
Discussion
Loading comments...
IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED FEB 26, 2026
Senate BillS 3935Finance and Financial Sector
Municipal Securities Rulemaking Board Reform Act of 2026
INTRODUCED FEB 26, 2026· LAST ACTION FEB 26, 2026
PASSAGE CHANCES
—%
READING
16 min
COSPONSORS
0
COMPLEXITY
Moderate
