The Securities and Exchange Commission updates its priorities

Since Paul Atkins assumed the role of Chairman of the US Securities and Exchange Commission (SEC or “the Commission”), responsible investors have been awaiting greater insight into the policy shifts and regulatory direction the agency will take. The recent release of the SEC’s Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions (“the Agenda”), a document published twice a year that outlines rules the SEC anticipates considering in the near-term, offers the first detailed glimpse into that direction.

In the accompanying statement, Chairman Atkins emphasises that the Agenda marks “a new day at the Securities and Exchange Commission.” He characterises the agenda items as being reflective of the Commission’s “renewed focus on supporting innovation, capital formation, market efficiency, and investor protection.” Key priorities outlined include a series of deregulatory initiatives aimed at reducing compliance burdens, streamlining pathways for raising capital, and increasing retail investors’ access to private and alternative assets.

Here, we summarise some of the changes to the Agenda and, in particular, what responsible investors should be aware of for the year to come.

Additions to the Agenda

The Agenda outlines a range of forthcoming rules that signal the priorities of the SEC’s new leadership. It is important to note that the Commission will not release proposed rule text until it has been drafted for each item. This can often be a year or more from the time the proposed rules are first announced. Potential elements that may be included in the upcoming proposals include:

• Rationalization of Disclosure Practices
  The Commission plans to propose amendments that “rationalize disclosure practices to facilitate material disclosure by companies and shareholders’ access to that information.” Amendments may refocus disclosures on information deemed to have a direct or immediate impact on a company’s financial performance or stock price, potentially disallowing disclosures the Administration considers to be ESG-related, even when financially material (i.e. executive compensation and long-term risk disclosures).

• Shareholder Proposal Modernization
  The Commission is considering amendments to Exchange Act Rule 14a-8, which governs the shareholder proposal process. According to the Agenda, the intention would be to “reduce compliance burdens for registrants and account for developments since the rule was last amended.” Potential changes could include raising the ownership threshold required to submit proposals, making it easier for companies to exclude proposals from proxy materials, and easing procedural hurdles for companies seeking to block shareholder votes.

A continued focus on cryptocurrency

Earlier this summer, the US President signed the GENIUS Act into law, establishing a regulatory framework for stablecoins. The SEC was then directed to consider guidance, rulemaking or other steps to accompany the bill. The Agenda includes an item indicating plans to issue new rules related to the offer and sale of cryptocurrency to “help clarify the regulatory framework for crypto assets and provide greater certainty to the market.” This will likely remain the top priority for the new SEC leadership, which may delay progress on other rulemaking until a crypto framework is finalised.

Omissions from the Agenda

On June 12 2025, the SEC issued a notice regarding the withdrawal of various rules proposed under the previous Chairman, Gary Gensler. Since these rules were never finalised and did not receive a vote by Commissioners, this is a simple step the new SEC leadership can take to alter policy priorities.

In total, the Commission withdrew fourteen proposed rules. The notice states, “The Commission does not intend to issue final rules with respect to these proposals. If the Commission decides to pursue future regulatory action in any of these areas, it will issue a new proposed rule.” The withdrawals of note include:

• Substantial Implementation, Duplication, and Resubmission of Shareholder Proposals Under Exchange Act Rule 14a-8
  These proposed amendments to Rule 14a-8 were intended to update certain bases companies can use to exclude shareholder proposals from proxy materials. The proposed amendments would have added clarity and limited the subjectivity of staff when making no-action decisions related to proposals that had already been substantially implemented by a company, or if a proposal was a near copy or addressed the same subject matter as a previously voted on proposal.
• Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices
  Often referred to as a “labelling rule,” this proposal would have introduced three categories for sustainability-related funds and products, each with differing disclosure requirements. The proposed labels included integration funds, ESG-focused funds and impact funds.

Department of Labor aligns with SEC priorities

The Department of Labor (DOL) also released its Spring 2025 Unified Agenda, which includes an item titled, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights. The DOL is responsible for enforcing the Employee Retirement Income Security Act of 1974 (ERISA), the primary federal law that governs private-sector retirement and health benefit plans. This agenda item will almost certainly rescind and replace the Biden-era guidance that currently allows ERISA fiduciaries to make investment decisions based on factors they reasonably determine are relevant to a risk and return analysis, including the economic effects of climate change and other ESG considerations.

What comes next?

While the Spring 2025 Unified Agenda outlines the Commission’s intended priorities, the timing of proposed rules remains uncertain. Historically, the target dates listed on the Agenda are more reflective of the relative prioritisation of the policy changes on the list than the dates proposals are expected to be released.

The PRI will continue to monitor rulemaking developments and prepare to engage on proposals relevant to our signatory base. We remain committed to ensuring the investor perspective is well represented in regulatory discussions and welcome feedback from signatories navigating these changes in real time.