The SEC recently announced proposed rule changes that would require all public companies to include certain disclosures in their registration statements and periodic reports relating to climate-related risks and the companies’ oversight and governance of these risks. While these rules would apply to public companies only, any startup eyeing an IPO or a SPAC needs to take notice of these requirements.
Here are few rule changes to be aware of:
↪️ Developments in cryptocurrency regulation are unfolding. President Biden recently issued an executive order directing the U.S. government’s regulatory agencies to examine the risks and benefits of cryptocurrencies.
↪️ Shifts in antitrust enforcement should be considered by companies. The EU’s Digital Markets Act, or DMA, targets big tech companies, requiring them to let their services interoperate with those of rivals.
↪️ Privacy is another area where it can be daunting to ensure compliance. With heightened consumer concerns about data privacy, regulators are moving quickly to protect their constituents’ data.
↪️ Advancements in technologies are increasing the rate of changes in a regulatory environment striving to keep pace with company innovations. It is critical for startups to have a comprehensive understanding of any existing regulations governing their industry, as well as those that are on the horizon.
Read the full article on Foley & Lardner’s website here.