Following the 2007-2009 financial crisis, governments around the world passed laws that
marked the beginning of new period of enhanced regulation of the financial industry. These
laws called for a myriad of new regulations, which in the U.S. are created through the socalled notice-and-comment process. Through examining the text documents generated
through this process, we study the formation of regulations to gain insight into how new regulatory regimes are implemented following major laws like the landmark Dodd-Frank Wall
Street Reform and Consumer Protection Act. Due to the variety of constituent preferences
and political pressures, we find evidence that the government implements rules strategically
to extend the regulatory boundary by first pursuing procedural rules that establish how economic activities will be regulated, followed by specifying who is subject to the procedural
requirements. Our findings together with the unique nature of the Dodd-Frank Act translate
to a number of stylized facts that should guide development of formal models of the rulemaking process.