Shrink the SEC?

Bloomberg reports that the Obama administration may attempt to reduce the regulatory power of the SEC, although the article acknowledges that the administration may have difficult time gaining the required support in congress. I am interested to see whether the proposed changes would affect either financial accounting standard setting or public company audit standard setting (both fall under SEC jurisdiction via the FASB and PCAOB). I would also like to know why the administration believes that we have a need for such a regulatory overhaul. While the SEC has had some rather public blunders lately, I believe that the agency plays an important and valuable role in helping to ensure a safe and fair marketplace. I have a hard time believing that diminishing or dissolving the agency is in the best interests of the country as a whole.