SEC Withdraws 14 Gensler-Era Rule Proposals

On June 12, the SEC formally withdrew 14 rule proposals issued under former SEC Chair Gary Gensler, spanning the areas of cybersecurity/technology, digital assets, market fairness and ESG.  Most directly applicable to fund boards are the proposed rules on Cybersecurity Risk Management for Advisers and Funds and Enhanced ESG Disclosures for Investment Advisers and Funds.  Other withdrawn proposals included Safeguarding Advisory Client Assets (Digital Assets Custody), Safeguarding Client Assets (206(4)-2 Custody Rule Update), Regulation Best Execution, Security Based Swaps, Outsourcing by Investment Advisers, Conflicts of Interest in the Use of Predictive Data Analytics, and AI.  In its announcement, the SEC stated that it does not intend to issue final rules relating to these proposals and would issue new proposed rules if it decides to pursue future regulatory action in any of these areas. The SEC remains focused on digital assets through the work of the SEC’s Crypto Task Force.

Click here to view the SEC’s Proposed Rules Withdrawal Notice.