SEC enforcement priorities under Trump: Fewer disclosures, less ESG-focused, more crypto

SEC office

Change is likely coming to the Securities and Exchange Commission’s (SEC) enforcement priorities with the pending handover of the White House to Republican President-elect Donald Trump. Adjust your compliance priorities accordingly.

Likely Out: The SEC’s much-debated climate-related disclosure rule, which was approved in March only to be tabled in the face of legal challenges a month later. Environmental, social, and governance rule initiatives that are related to disclosures and internal controls. Diversity, equity, and inclusion rules that pressured corporations to add women and minorities to their boardrooms and make human capital management disclosures. The SEC’s private fund adviser rule, which had already been struck down by a federal court, will likely not be revived.

Likely In: Cryptocurrency and digital assets, stuck in the purgatory of a “regulation by enforcement” stance under SEC Chair Gary Gensler, will likely see their fortunes improve. Efforts to roll back some of the more controversial provisions of the Dodd-Frank Act of 2010, particularly those that affect big banks. The Gensler-led SEC expended much political capital to adopt long-lingering Dodd-Frank rules over the past three years.

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