SEC Guidance and Other Activities

SEC to Host Roundtable on Artificial Intelligence

On February 28, 2025, the SEC announced it will hold a roundtable discussion on Artificial Intelligence (AI) in the financial industry on March 27.  The roundtable will discuss “the risks, benefits, and governance of AI in the financial industry.”

The SEC will post the agenda and other materials on the AI Roundtable’s event page.

The press release is available here.

SEC Announces Cyber and Emerging Technologies Unit to Protect Retail Investors

On February 20, 2025, the SEC announced the creation of the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space. The CETU, replaces the Crypto Assets and Cyber Unit.

The press release is available here.

CAT Update:  Exemption From the Requirement to Report Certain Personally Identifiable Information

On February 10, 2025, the SEC provided an exemption from the requirement to report personally identifiable information (PII) to the CAT.  This includes names, addresses, and years of birth for any U.S., natural person who trades in the stock market.  In the announcement the Commission said,  “[p]roviding an exemption from the requirement to report this PII to the CAT will help mitigate potential security risks.”

The press release is available here.

Shareholder Proposals: Staff Legal Bulletin No. 14M (CF)

On February 12, 2025, the SEC’s Division of Corporation Finance published Staff Legal Bulletin No. 14M (CF) and rescinded Staff Legal Bulletin Nos. 14I, 14J and 14K.  It is expected that the new guidance will provide additional flexibility for public companies to exclude shareholder proposals from their proxy statements.  The Bulletin clarifies the Staff’s views on the scope of the “economic relevance” and “ordinary business” bases for excluding shareholder proposals under Rule 14a-8.

Staff Legal Bulleting No. 14M (CF) is available here.

Exchange Act Sections 13(d) and 13(g) and Regulation 13D-G Beneficial Ownership Reporting

On February 11, 2025, the SEC’s Division of Corporation Finance updated their Compliance and Disclosure Interpretations ("C&DIs") of Exchange Act Sections 13(d) and 13(g), Regulation 13D-G beneficial ownership reporting and related Schedules 13D and 13G (Questions 103.11 and 103.12 have also been updated). The new C&DIs address issues related to determining eligibility to file a Schedule 13G, such as whether the shareholder acquired the securities with the purpose or effect of changing or influencing control of the issuer.

The Update is available here.

SEC Expands Accommodations for Issuers Submitting Draft Registration Statements

On March 3, 2025, the SEC expanded the types of forms eligible to be submitted as draft registration statements for nonpublic review and permit reporting companies to submit draft registration statements for nonpublic review regardless of how much time has passed since their initial public offering. In addition, companies will have added flexibility to start the review process earlier by omitting certain underwriter disclosures from their initial submissions.

The press release is available here:

https://www.sec.gov/newsroom/press-releases/2025-50

More information about the new accommodations is available here:

https://www.sec.gov/newsroom/whats-new/draft-registration-statement-processing-procedures-expanded

UK Issues Accelerated Settlement (T+1) Policy Paper

On Feb 19, 2025 the UK government published a report accepting recommendations on technical standards to shorten its settlement window to T+1, consistent with the EU’s timeline.  The government has accepted all of the recommendations made to it and will legislate to make T+1 the standard settlement cycle in the UK starting on October 11, 2027.

The Policy Paper is available here.

European Commission Proposes to Shorten Settlement Cycle for EU Securities from Two Days to One

On February 12, 2025, the European Commission published a proposal to shorten the settlement period for EU transactions in transferable securities from two days (T+2) to one (T+1).

The proposal is available here.

FINRA

Podcast: Using Data to Stay Ahead of Risk: Introducing FINRA’s StratIntel Team

On February 11, 2025, the leaders of FINRA's new Strategic Intelligence and Analytics (StratIntel) team discuss how they are evolving FINRA's approach to intelligence gathering and risk monitoring.

The podcast is available here.

Retirement

New Department of Labor Secretary: Lori M. Chavez-DeRemer

On March 10,2025, Lori M. Chavez-DeRemer was confirmed as Secretary of Labor.

Her Senate confirmation hearing is available here:

A link to the video of the hearing is available here.

Daniel Aronowitz is Nominated to be Assistant Secretary of Labor for EBSA

On February 12, 2025, President Trump nominated Daniel Aronowitz, President of Encore Fiduciary, a Fiduciary Liability insurance underwriting company for America’s employee benefit plans, to be Assistant Secretary of Labor for EBSA. EBSA oversees more than 801,000 private retirement plans, 2.6 million health plans, and 514,000 other welfare benefit plans,

Danial Aronowitz’s nomination, and others sent to the Senate on February 12, 2025, is available here:

https://www.whitehouse.gov/presidential-actions/2025/02/nominations-sent-to-the-senate/

Crypto

SEC Crypto Task Force RFI

On February 21, 2025, SEC Commissioner Hester M. Peirce issued a statement titled, “There Must Be Some Way Out of Here.” In the statement, Peirce requested information from the public to help the SEC Crypto Task Force create a regulatory framework for digital assets. They include 48 questions broken down into categories, including: security status, scoping, public offerings, safe harbor from registration, trading, custody, crypto lending, crypto exchange trade products, and tokenized securities.

Commissioner Peirce’s statement is available here: https://www.sec.gov/newsroom/speeches-statements/peirce-statement-rfi-022125

More information about the SEC Task Force is available here: https://www.sec.gov/newsroom/press-releases/2025-49?utm_medium=email&utm_source=govdelivery

SEC Crypto Task Force Roundtables

The SEC will host a series of roundtables to discuss key areas of interest in the regulation of crypto assets. The “Spring Sprint Toward Crypto Clarity” series will begin on March 21 with its inaugural roundtable, “How We Got Here and How We Get Out – Defining Security Status.”

More information about the March 21 roundtable is available here:

https://www.sec.gov/newsroom/meetings-events/how-we-got-here-how-we-get-out-defining-security-status

Congressional Working Group on Digital Assets

On February 4, 2025, Senate Banking Committee (SBC) Chairman Tim Scott (R-S.C.) his colleagues (from the White House and Congress) announced the creation of a bicameral working group (WG) focused on digital assets.  The WG is comprised of members of the SBC, the House Financial Services Committee, and the Senate and House Agriculture Committees, with the goal of  building consensus around a regulatory framework for digital assets that will ensure innovation in the USA.

The announcement and video of Chairman Scott’s remarks are available here.