Democrats have put too much political capital in health care and not enough in financial regulatory reform, one of today’s pressing issues. The economy seems to be the chief issue with Americans; we want faith restored in our own future as well as our country’s future. Placing an emphasis on financial regulatory reform will give us the peace of mind we have been looking for.

Peace of mind starts with common ground; both parties must realize tighter regulations are needed to ensure another slump does not sneak up on us.

It is foolish to rely on unregulated markets when a downturn of epic proportions has thrust millions out of work and strained tensions in this country to an almost unbearable level.

The House of Representatives passed far-reaching financial regulation legislation in December. The bill would create a Consumer Protection Financial Agency and curb executive pay for large corporations and banks, according to The New York Times.

The new agency would help discourage and protect consumers from engaging in risky lending practices. Limits on executive pay would help dissuade the trading of risky assets.

However, the House bill missed an important point: derivatives, which, according to The New York Times, played an important part in the economic crash, are tied to mortgages and credit markets.

The legislation that emerged from the House only loosely regulates derivatives now. Before, they were traded privately and financial institutions disclosed little to no information regarding derivative transactions.

If the bill passes, only derivatives traded with Wall Street companies and major companies, such as AIG, will be regulated.

Rep. Barney Frank, D-Mass., told CNBC about the ever-growing economy and this legislation.

“What you need, then, is for the government to step in then and not stifle the innovation, but to create a regulatory framework adequate to it,” Frank said.

This bill does not create an adequate framework because it leaves portions of the derivatives market unregulated.

Financial regulatory reform faces an uncertain future in the Senate. Sen. Christopher Dodd, D-Conn., a key advocate for this issue, has announced he will not seek reelection this year. Dodd is the main sponsor and the driving force behind the Senate’s proposed financial regulatory reforms.

Regardless of who is in the Senate, this contentious issue must be debated and resolved. Our financial future depends on it; the last thing on our domestic agenda is another economic freefall.

Reach Andrew at andrew.hedlund@asu.edu