SEC State of Play

08 Aug SEC State of Play

With Congress officially out of town for the August recess, all eyes are on the Securities and Exchange Commission (SEC) as the rulemaking process is full speed ahead with a packed agenda. Since being sworn in, Chair Gary Gensler and the rest of the agency have taken a very active approach to rulemaking. The SEC has finalized a total of 13 rules, has another 33 proposed rules awaiting finalization, and has 13 more rules on the agenda that have not yet been proposed. Through this extensive rulemaking effort, the current SEC leadership has a chance to dramatically overhaul the existing regulatory regime and to impose new frameworks to address emerging trends and products in the U.S. capital markets.
While the pace and volume of the SEC’s rulemaking has received attention, the SEC has also faced criticism from Capitol Hill and the financial services industry suggesting that the SEC lacks the legal authority to pursue certain rules, is ignoring Congressional intent, and is hindering capital formation and innovation. That said, many Democrats on Capitol Hill continue to support the SEC’s efforts — especially after years of limited legislative progress on major items related to the environment, private funds disclosure, diversity initiatives, and much more.