when donald trump was elected president in 2016 he pledged to repeal dodd frank siding with critics the u s congress passed the economic growth regulatory relief and consumer protection act which rolled back significant portions of the dodd frank act 
it was signed into law by then president trump on may 24 2018 9these are some of the provisions of that law and some of the areas in which previous standards were loosened after joseph biden was elected president in 2020 the cfpb focused on rescinding rules from the trump era that were in direct conflict with the charter of the cfpb the biden administration also announced its intent to reestablish rules against other forms of predatory lending such as payday loans on june 30 2023 bided signed a law to overturn the occ s payday lending regulations 10 additionally subprime auto loan practices are being addressed by the cfpb 11criticism of the dodd frank actproponents of dodd frank believed that the law would prevent the economy from experiencing a crisis like that of 2007 2008 and protect consumers from many of the abuses that contributed to the crisis detractors however have argued that the law could harm the competitiveness of u s firms relative to their foreign counterparts in particular they contend that its regulatory compliance requirements unduly burden community banks and smaller financial institutions despite the fact that they played no role in causing the financial crisis 12such financial world notables as former treasury secretary larry summers blackstone group l p bx ceo stephen schwarzman activist carl icahn and jpmorgan chase co jpm ceo jamie dimon also argued that while each institution is undoubtedly safer due to the capital constraints imposed by dodd frank the constraints make for a more illiquid market overall 1314the lack of liquidity can be especially detrimental in the bond market where all securities are not marked to market and many bonds lack a constant supply of buyers and sellers the higher reserve requirements under dodd frank mean that banks must keep a higher percentage of their assets in cash this decreases the amount that they are able to hold in marketable securities 1in effect this limits the bond market making role that banks have traditionally undertaken with banks unable to play the part of a market maker prospective buyers are likely to have a harder time finding counteracting sellers more importantly prospective sellers may find it more difficult to find counteracting buyers 