Politics

Dodd-Frank reform is still a ‘this-year priority,’ Rep. Hensarling says

Rep. Hensarling: Dodd-Frank is to household finances as Obamacare is to health care
VIDEO3:2703:27
Rep. Hensarling: Dodd-Frank is to household finances as Obamacare is to health care

While some of President Donald Trump's initiatives may wind up being pushed into next year, Rep. Jeb Hensarling told CNBC on Tuesday he believes reforming the Dodd-Frank banking regulations "is still a this-year priority."

"The president, the vice president and the speaker all know that you can't get a healthy economy as long as you have Dodd-Frank on the books," said the Texas Republican, who chairs the Financial Services Committee.

"I'm under the impression it remains a this-year priority but it's a dynamic environment, it's not a static environment," he said in an interview with "Closing Bell."

Last week, Trump signed an executive order directing the Treasury Department to review the financial system regulations, including Dodd-Frank. Trump has been a strong critic of the banking industry rules, which were passed after the 2008 financial crisis.

Trump's order directs the Treasury Department to submit a report within 120 days on possible regulatory changes or legislative recommendations.

Hensarling has already offered an alternative to Dodd-Frank with his Financial Choice Act, introduced last year.

He argues that Dodd-Frank is a "disaster" that is hurting the economy.

"Too many small businesses, too many entrepreneurs can't find lending because of the sheer weight, volume and control of Dodd-Frank," he said.

"Dodd-Frank clogs the arteries of capitalism in our system. It hurts working people. It hurts consumers. It needs to go."

He also called the Consumer Financial Protection Bureau a "rogue agency" that is unconstitutional and also "must go."

— CNBC's Jacob Pramuk contributed to this report.