June 2 (Bloomberg) -- U.S. Representative Christopher Cox, a Republican from California who favors cutting taxes and curbing shareholder lawsuits, was nominated today by President George W. Bush to lead the U.S. Securities and Exchange Commission.

``Chris Cox knows that a free economy is built on trust,'' Bush said today. Cox, he said, is a ``champion of the free enterprise system,'' who ``will vigorously enforce'' SEC regulations.

If confirmed by the Senate, Cox, 52, will replace William Donaldson as chairman of the agency, which regulates the world's biggest securities market and polices every company that sells shares in the United States. Donaldson, 74, announced his resignation yesterday.

The U.S. Chamber of Commerce, which has criticized the SEC during Donaldson's tenure for imposing burdensome rules and excessive fines on American businesses, welcomed the announcement.

``He's the kind of person who will bring the kind of philosophy that's needed to move the SEC forward at this time and he will work well with people across the political spectrum,'' David Hirschmann, senior vice president at the Washington-based Chamber, said in an interview.

To contact the reporter on this story: Otis Bilodeau in Washington at obilodeau@bloomberg.net Robert Schmidt in Washington at rschmidt5@bloomberg.net.

Last Updated: June 2, 2005 10:28 EDT