SEC Rulemaking Stalls Amid Legal Challenges and Court Rulings
The U.S. Securities and Exchange Commission faces significant setbacks as courts overturn key regulations, impacting its ability to enforce new rules.
- The SEC's rulemaking has slowed due to adverse court decisions, affecting oversight of the $27 trillion private funds industry and share buyback disclosures.
- Recent Supreme Court rulings have limited the SEC's authority, forcing the agency to reconsider its approach to rulemaking and enforcement actions.
- More than a dozen SEC rules, including those on climate change and board diversity, have faced legal challenges, delaying their implementation.
- The Managed Funds Association and other groups have successfully overturned several SEC regulations, questioning the agency's authority and economic justification.
- As the SEC adjusts its strategies, it aims to ensure future regulations can withstand legal scrutiny, while facing pressure from political and industry groups.