The Public Company Accounting Oversight Board is expected to approve revised guidelines for the Sarbanes-Oxley Act today, though its effectiveness in U.S. markets is still debated.
The new guidelines will continue to hinder America's competitiveness globally, John Berlau, Economic Policy Fellow at Competitive Enterprise Institute, said on "Squawk Box," though one CEO sees a promising future.
Harvey Pitt, founder and CEO of Kalorama Partners and a former Securities and Exchange Commission chairman, said that the problem lies not within the act, but within the American liability spectrum.
"Many companies fear the legal liability system in this country, and that, I think, is the principle deterent to American competitiveness globally," Pitt said.
Despite Pitt's claim, Berlau said the act won't help because the guidelines are still broad and vague. "I really think it's time for Congress to clean up the mess that they created with this," Berlau said.