SEC Overhaul: Biden Proposals Scrapped
- The Securities and exchange Commission (SEC) is initiating a regulatory overhaul, withdrawing 14 proposed rules and amendments introduced between March 2022 and November 2023 under the Biden administration.This...
- In a June 12 notice, the SEC indicated that the withdrawn proposals covered areas such as cybersecurity, ESG disclosures, and shareholder rights.
- Among the rescinded proposals was a 2022 ESG rule that would have mandated investment advisors, funds, and other financial institutions to disclose how environmental, social, and governance factors...
The SEC is undergoing a meaningful regulatory shift, scrapping 14 proposals from the Biden era, marking a pivotal moment for the financial sector. This decisive move impacts cybersecurity, ESG disclosures, and shareholder rights. The agency, under new leadership, is signaling a pivot towards deregulation and industry adaptability, potentially reshaping the landscape for investment advisors and firms. Furthermore, Brian Daly‘s appointment as Director of the Division of Investment Management adds another layer to these changes.News Directory 3 keeps you informed on these developments. Discover the implications for investors and the future of financial regulations.
SEC Regulatory Shift: 14 Biden-Era Proposals Scrapped
Updated June 23, 2025
The Securities and exchange Commission (SEC) is initiating a regulatory overhaul, withdrawing 14 proposed rules and amendments introduced between March 2022 and November 2023 under the Biden administration.This move signals a meaningful shift toward deregulation and industry adaptability under President trump’s appointees.
In a June 12 notice, the SEC indicated that the withdrawn proposals covered areas such as cybersecurity, ESG disclosures, and shareholder rights. The agency stated that any future regulatory action in these areas would involve issuing new proposed rules compliant with the Administrative Procedure Act. This regulatory rollback emphasizes a move away from prescriptive rulemaking.
Among the rescinded proposals was a 2022 ESG rule that would have mandated investment advisors, funds, and other financial institutions to disclose how environmental, social, and governance factors influenced their investment strategies. The SEC’s decision reflects a change in priorities regarding environmental, social, and governance (ESG) investing and disclosure requirements.
Other significant withdrawals included proposals related to safeguarding client assets, enhancing cybersecurity defenses for firms, investment advisors, and broker-dealers, redefining best execution and order competition for retail investors, and regulating outsourcing by investment advisors. These withdrawals highlight the SEC’s shift in focus toward deregulation and industry flexibility.
While the SEC did not provide specific reasons for each withdrawal, it emphasized that it was no longer pursuing final rules for these proposals. The agency left open the possibility of revisiting these topics under a new rulemaking process, suggesting a potential future reevaluation of these regulatory areas.
Along with the regulatory changes, the SEC announced the appointment of Brian Daly as Director of the Division of Investment Management, effective July 8. He will succeed Acting Director Natasha Vij Greiner, who will depart the agency on July 4.
What’s next
The SEC’s regulatory shift indicates a move toward deregulation and industry flexibility,with potential future reevaluations of key regulatory areas under a new rulemaking process. The appointment of Brian Daly as Director of the Division of Investment Management further underscores these changes.