Question

The Securities and Exchange Commission (SEC) sought to change the rules so that stock options would in the future be charged as expenses. Congress did not like the proposed rule change and sought to dissuade the SEC from enacting it. What actions may Congress legally take to convince the SEC to drop its proposed rule change?
Congress may threaten to defund the SEC through cutting or even eliminating its budget.

Congress may dissolve the agency.

Congress may fire the head of the agency.

Congress may either threaten to defund the SEC through cutting or even eliminating its budget, or it can dissolve the agency.

Answer 1

Answer:

Congress may threaten to defund the SEC and may also dissolve the agency.

Explanation:

The congress has the power to interfere in the rules adopted by an agency if there is a possibility that these rules could harm the market at local or national level. This interference has even greater power if the agency receives funding and is actively dependent on the state's permission to remain established, as is the case with the SEC.

In the question above, we can see that the SEC has adopted rules that displease Congress, so that Congress can persuade the SEC to adopt these rules, it may threaten to defund the SEC and may also dissolve the agency.