U.S. President George W. Bush has tapped Christopher Cox, a pro-business California congressman, to replace Bill Donaldson atop the U.S. Securities and Exchange Commission.

Bush announced his intention Thursday to nominate Cox, 52, to be the next chairman of the SEC. Current chairman Donaldson announced on Wednesday that he will retire from the position later this month. It’s believed that Cox will favour less intrusive regulation than Donaldson, who leaves amid several high-profile clashes with the SEC’s Republican commissioners.

Currently the chairman of the Homeland Security Committee in the House of Representatives, Cox is serving his ninth term in Congress. His 20-year Washington career includes 10 years in the elected House majority leadership, as chairman of the House Policy Committee and chairman of the Select Committee on Homeland Security, among numerous other committee postings.

Before entering Congress, he served as senior associate counsel to the president from 1986 to 1988. From 1984-1986 he was a partner at Latham & Watkins, an international law firm, and from 1982 to 1983 he was a lecturer on business administration at Harvard Business School.

Securities Industry Association president Marc Lackritz praised Cox’s nomination, calling him an “excellent choice” to head the SEC, and he urged the Senate to confirm Cox.

“There are a number of important issues facing the SEC, and we look forward to working with chairman-designate Cox in addressing them. SIA will continue to support the commission’s preeminence as the industry’s primary, national regulatory authority, and its efforts to enhance effective investor protection while providing relief from burdensome, costly, and unnecessary regulation,” Lackritz said.

“America’s investing public, our markets and our nation will be well served by Rep. Cox’s deep understanding of finance and our legal system, his extensive domestic and international experience, and his commitment to fiscal responsibility and ethics,” said NYSE CEO John Thain in a statement.