Regulatory body, SEC, abolishes planned cybersecurity guidelines for financial advisors and market participants.
The Securities and Exchange Commission (SEC) has made a surprising move by withdrawing proposed cybersecurity regulations for investment advisers and securities market participants. This decision, announced on June 12, 2025, marks a potential reversal of the SEC's plans to subject major financial entities to cybersecurity requirements for the first time.
The proposed rules were aimed at addressing the digital threats posed by hackers to the financial-services sector, a concern the SEC had expressed due to the sector's lack of seriousness towards cybersecurity. The commission had noted that these threats pose a serious risk to the financial system.
The SEC's new leadership, under President Trump's appointee, has withdrawn the proposed cybersecurity regulations without providing an explanation. This decision could signal a shift in the commission's approach to cybersecurity regulation, aligning with the Trump administration's opposition to Biden-era efforts to address cybersecurity through regulation.
The financial services industry could be emboldened to press for the rescission of the cyber incident disclosure rule, which the SEC adopted in 2023 under Democratic leadership. The rollbacks of these proposed regulations raise questions about the now Republican-led SEC's commitment to this disclosure rule.
The SEC's spokesperson declined to address the decision but stated that the commission is focusing on promoting, rather than stifling, innovation. However, the withdrawal of these regulations may also reflect a desire to streamline regulations or respond to concerns about the effectiveness or burden of proposed rules.
The SEC's actions could potentially impact the cyber incident disclosure rule, which was adopted in 2023 under Democratic leadership. An update in the article includes a comment from the SEC, but details were not provided.
This withdrawal is part of a broader initiative to reassess and potentially revise the regulatory approach to cybersecurity and other areas. Future rulemaking on these topics will begin anew, allowing for additional public comment and potentially reflecting updated priorities or insights.
[1] SEC Press Release, SEC Announces Withdrawal of Proposed Rules (June 12, 2025). [3] Financial Times, SEC Withdraws Proposed Cybersecurity Rules (June 12, 2025). [5] Wall Street Journal, SEC Withdraws Proposed Cybersecurity Rules for Financial Advisers (June 12, 2025).
Read also:
- Innovative Garments and Accessories Producing Energy: Exploring Unconventional Sources for Renewable Power
- Tesla-powered homes in Houston cause buying rush among interested buyers
- MoneyGram's Investment in 'Drive to Survive' Yielded Results?
- Deep Hole Drilling Industry Forecasted to Expand to a Value of $1,108.2 Million by 2034 at a Compound Annual Growth Rate of 5.8%
