How heavily regulated is credit rating agency in the US?

Answer 1

Credit rating agencies in the U.S. are subject to regulation primarily through the Dodd-Frank Wall Street Reform and Consumer Protection Act, which established stricter oversight and transparency requirements. They must register with the Securities and Exchange Commission (SEC) as Nationally Recognized Statistical Rating Organizations (NRSROs) and are required to adhere to specific standards regarding the quality of their ratings and the management of conflicts of interest. However, despite these regulations, critics argue that agencies still operate with significant latitude and that more stringent reforms may be necessary to enhance accountability and mitigate potential conflicts.