On June 12th, the Securities and Exchange Commission (SEC) yanked 14 proposed rules that were pursued during the aggressive Gensler administration.
While the former SEC Chairman during the Biden Administration sought to undermine innovation while pursuing a social agenda, the Atkins Commission is clearly realigning priorities at the nation’s securities regulator.
Emblematic of the Gensler regulatory onslaught during the last four years is a proposed rule under the ESG (Environmental, Social, and Governance sector). Among other things, this rule would have required ESG funds to disclose the greenhouse gas emissions associated with their portfolio investments. Obviously this is a herculean task that would simply add costs, and/or bogus information to these funds.
Chairman Atkins has moved quickly to support digital asset innovation. Where Gensler ignored the potential of digital assets, Atkins will probably end up a transformative leader at the SEC, recognized in the history books.
The list of the reversed rules is below:
- S7-20-22 – Substantial Implementation, Duplication, and Resubmission of Shareholder Proposals Under Exchange Act Rule 14a-8; Corporation Finance
- S7-12-23 – Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers; Trading and Markets, Investment Management
- S7-04-23 – Safeguarding Advisory Client Assets; Investment Management
- S7-04-22 – Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies; Investment Management, Investment Management
- S7-17-22 – Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices; Investment Management
- S7-25-22 – Outsourcing by Investment Advisers; Investment Management
- S7-32-10 – Position Reporting of Large Security-Based Swap Positions; Trading and Markets
- S7-18-23 – Volume-Based Exchange Transaction Pricing for NMS Stocks; Trading and Markets
- S7-32-22 – Regulation Best Execution; Trading and Markets
- S7-31-22 – Order Competition Rule; Trading and Markets
- S7-07-23 – Regulation Systems Compliance and Integrity; Trading and Markets
- S7-06-23 – Cybersecurity Risk Management Rule for Broker-Dealers, Clearing Agencies, Major Security-Based Swap Participants, the Municipal Securities Rulemaking Board, National Securities Associations, National Securities Exchanges, Security-Based Swap Data Repositories, Security-Based Swap Dealers, and Transfer Agents; Trading and Markets
- S7-02-22, S7-12-20 – Regulation ATS for ATSs That Trade U.S. Government Securities, NMS Stock, and Other Securities; Regulation SCI for ATSs That Trade U.S. Treasury Securities and Agency Securities; and Electronic Corporate Bond and Municipal Securities Markets; Trading and Markets
- S7-10-20 – Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail To Enhance Data Security; Trading and Markets
