On March 31, 2025, the U.S. House Financial Services Committee (Committee) penned a letter to acting Securities and Exchange Commission (SEC) Chair Mark Uyeda identifying 14 proposed and final rules that, according to the Committee, should be withdrawn in their entirety. All of the cited rules were proposed or implemented under prior SEC Chair Gary Gensler. The Committee’s letter urged the SEC to revisit and withdraw the rules listed below, each linked to their respective proposed or adopting release, as applicable, in the interest of keeping U.S. capital markets attractive to existing and future public companies:
- Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure;
- Short Position and Short Activity Reporting by Institutional Investment Managers;
- Reporting of Securities Loans;
- Pay Versus Performance;
- Investment Company Names;
- Form N-PORT and Form N-CEN Reporting; Guidance on Open-End Fund Liquidity Risk Management Programs;
- Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker Dealers and Investment Advisers;
- Open-End Fund Liquidity Risk Management Programs and Swing Pricing;
- Regulation Best Execution;
- Order Competition;
- Position Reporting of Large Security-Based Swap Positions;
- Regulation Systems Compliance and Integrity;
- Outsourcing by Investment Advisers; and
- Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices.
The letter is part of a broader series of exchanges by the Committee with various federal agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Consumer Financial Protection Bureau requesting the recission or significant modification of both proposed and final rulemaking largely promulgated during the Biden administration that, in view of the Committee, impedes U.S. capital formation and has negative economic consequences. The process for repeal of a final SEC rule is largely the same as that for implementation and would necessitate a public notice and comment period, absent finding by the SEC that such notice and comment procedures are impracticable, unnecessary or contrary to public interest. The Committee’s press release is available here, and the full text of the Committee letter to the SEC is available here.