Regulatory Insights April/May 2025

Your source for the latest updates from the SEC, DOL, and across the industry.

CONTENTS

SEC Guidance & Other Activities
  • SEC Small Business Capital Formation Advisory Committee - May Meeting
  • Paul Atkins Confirmed and Sworn Into office as SEC Chairman
  • SEC Extends Effective and Compliance Dates for Amendments to Form N-PORT Reporting
  • SEC Publishes New Data & Analysis About Registered Funds and Money Market Funds
  • House Financial Services Committee Outline Their Agency Priorities
  • SEC Votes to End Defense of Climate Disclosure Rules
  • SEC Roundtable on Artificial Intelligence in the Financial Industry
  • The SEC’s Division of Investment Management Provided a Marketing Rule Compliance Frequently Asked Questions
  • SEC Extends Compliance Dates for Amendments to Investment Company Names Rule
FINRA
  • Reg Notice 25-07: FINRA Requests Comment on Modernizing FINRA Rules, Guidance, and Processes for the Organization and Operation of Member Workplaces
  • FINRA Proposes Rule 6152 (Disclosure of Order Execution Information for NMS Stocks)
  • Regulatory Notice 25-05: FINRA Requests Comment on a Proposal to Reduce Unnecessary Burdens and Simplify Requirements Regarding Associated Persons’ Outside Activities
  • Regulatory Notice 25-04: FINRA Launches Broad Review to Modernize Rules Regarding Member Firms and Associated Persons
  • Section V: The Metaverse and the Implications - Request for Comments
Digital Assets
  • SEC’s Division of Corporation Finance Provides Crypto Asset Guidance
  • SEC Crypto Task Force Roundtables
  • US Senate Banking Committee Passes the Guiding and Establishing National Innovation for US Stablecoins (“GENIUS”) Act of 2025

SEC Guidance and Other Activities

SEC Small Business Capital Formation Advisory Committee - May Meeting

On May 6, the SEC Small Business Capital Formation Advisory Committee had their Spring meeting, which included a discussion on Regulation A.  The focus was on “Practical Considerations and Regulatory Challenges” and “continue[d] discussion regarding advantages and challenges of Regulation A with a view towards potential regulatory improvements.”

The agenda and press release are available here.

Chair Paul Atkin’s first remarks are available here.

Paul Atkins Confirmed and Sworn Into Office as SEC Chairman

On April22, Paul Atkins was sworn into office as the next SEC Chairman.  He was confirmed by the US Senate along party lines; the vote was 52-44.  Previously, Chair Atkins served as an SEC Commissioner from 2002 to 2008 and earlier in his career, he served on the staffs of SEC Chairmen Richard C. Breeden and Arthur Levitt.  His term runs through June 5, 2026, but it is expected that his term will be extended (via white house nomination and Senate confirmation) for an additional 5-year period.

SEC press release is available here.

The video of the nomination hearing is available here. 

SEC Extends Effective and Compliance Dates for Amendments to Form N-PORT Reporting

On April 16, 2025, the SEC announced an extension of the effective and compliance dates for many types of registered funds to more frequently report portfolio-related information on Form N-PORT.  The compliance date for larger fund groups is extended from Nov. 17, 2025, to Nov. 17, 2027, and the compliance date for smaller fund groups is extended from May 18, 2026, to May 18, 2028.  The extension is “designed to provide time for the Commission to complete its review of the amendments in accordance with a Presidential Memorandum and take any further appropriate actions, which may include proposed amendments to Form N-PORT.”

The announcement is available here.

SEC Publishes New Data and Analysis About Registered Investment Companies and Money Market Funds

On April 14, 2025, the SEC published new data and analysis in a pair of reports that provide the investing public with updated key information about registered investment companies and money market funds.  The data is based on fund filings on Form N-CEN and Form N-MFP.

The Reports are available here:

House Financial Services Committee Outline Their Agency Priorities

On April 1, 2025, Chairman French Hill (AR-02) and House Committee on Financial Services members sent letters to agencies requesting the rescission, modification, or re-proposal of specific Biden-Harris Administration actions.

The press release, areas of inquiry, and specific letters are available here.

 SEC Commission Votes to End Defense of Climate Disclosure Rules

On March 27, 2025, the SEC announced it will end its defense of the rules requiring disclosure of climate-related risks and greenhouse gas emissions. SEC Acting Chairman Mark T. Uyeda said, “the goal of today’s Commission action and notification to the court is to cease the Commission’s involvement in the defense of the costly and unnecessarily intrusive climate change disclosure rules.” The rules were adopted by the Commission on March 6, 2024.

The SEC press release is available here

SEC Roundtable on Artificial Intelligence in the Financial Industry

On March 27, 2025, the SEC hosted a roundtable discussion on AI in the financial industry.  The roundtable focused on the risks, benefits, and governance of AI in the financial industry. SEC Acting Chairman Mark Uyeda and SEC Commissioners Hester Peirce and Caroline Crenshaw delivered remarks. Tyler Derr, Broadridge Chief Technology and Product Officer, was a panelist.

The announcement and agenda available here.

Links to the YouTube videos of the roundtable are available here:

Marketing Compliance Frequently Asked Questions (“FAQs”)

On March 19, 2025, the Division of Investment Management published responses to questions related to the adoption of amendments to rule 206(4)-1 under the Investment Advisers Act of 1940 in December 2020. The staff expects to update this document from time to time to include responses to additional questions.

The FAQs and responses thereto are available here.

SEC Extends Compliance Dates for Amendments to Investment Company Names Rule

On March 14, 2025, the SEC announced a six-month extension of the compliance dates for amendments adopted in September 2023 to the Investment Company Act “Names Rule,” which addresses fund names likely to mislead investors about a fund’s investments and risks. The compliance date for larger fund groups is extended from Dec. 11, 2025, to June 11, 2026; the compliance date for smaller fund groups is extended from June 11, 2026, to Dec. 11, 2026.

The press release is available here.

    FINRA

    Reg Notice 25-07:  FINRA Requests Comment on Modernizing FINRA Rules, Guidance, and Processes for the Organization and Operation of Member Workplaces

    On April 14, FINRA published Regulatory Notice 25-07, seeking comments on how FINRA should update “its rules, guidance and processes to reflect modern business practices and markets; support innovation and new technologies; promote efficiency; and eliminate unnecessary regulatory burdens—all in the interest of supporting vibrant capital markets in which everyone can participate with confidence.” 

     Topics include: (1) branch offices and hybrid work, (2) registration process and information, (3) qualifications and CE, (3) delivery of information to customers (electronic delivery and negative consent letters), (4) recordkeeping and digital communications, (5) compensation arrangements, (5) fraud protections, and (5) updates to FINRA’s systems to support member compliance.

    Comment Period:  Extended to July 14, 2025

    The Notice is available here 

    FINRA Proposes FINRA Rule 6152 (Disclosure of Order Execution Information for NMS Stocks)

    On April 7, FINRA released for public comment a rule proposal that would require members to submit their order execution reports for NMS stocks to FINRA for publication on the FINRA website.

    Comment Period:  May 2, 2025.

    The FINRA rule proposal is availablehere. 

    Regulatory Notice 25-05: FINRA Requests Comment on a Proposal to Reduce Unnecessary Burdens and Simplify Requirements Regarding Associated Persons’ Outside Activities
    On March 14, 2025, FINRA published Regulatory Notice 25-05 requesting comments on a proposed new rule to streamline and reduce unnecessary burdens regarding existing requirements for the outside activities of member firms’ associated persons, including registered persons. The proposal would replace two rules with one to enhance efficiency without compromising protections for investors and members.

    Comment Periods: May 13, 2025.

    Regulatory Notice 25-05 is available here.

     Regulatory Notice 25-04: FINRA Launches Broad Review to Modernize Rules Regarding Member Firms and Associated Persons

    On March 12, 2025,FINRA published Regulatory Notice 25-04, the first step in a broad review of its regulatory requirements applicable to member firms and associated persons. To begin this review, FINRA has identified capital formation and the modern workplace as two initial areas of focus where it expects to issue targeted requests for comment in the near future.

    Comment Period:  Extended to June 11,2025.

    The announcement is available here.

    Section V: The Metaverse and the Implications for the Securities Industry Request for Comments

    FINRA is seeking comments to its report, “The Metaverse and the Implications for the Securities Industry,” from firms and other market participants currently exploring metaverse technology.

    Comment Period:  April 25, 2025

    The announcement and the report in its entirety is available here.

     

    CRYPTO

    SEC’s Division of Corporation Finance Provides Crypto Asset Guidance

    On April 10, 2025, the Division of Corporation Finance provided its views about the application of certain disclosure requirements under the federal securities laws to offerings and registrations of securities in the crypto asset markets.

    The SEC’s guidance is available here.

    SEC Crypto Task Force: RFI and Roundtables

    Launched on January 21, 2025, by Acting SEC Chairman Mark Uyeda, Commissioner Hester Peirce was appointed to lead the Crypto Task Force to help the Commission “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.” The press release is available here

    Commissioner Peirce issued a Request for Information (RFI) asking all stakeholders to respond with information to help the Commission.  The open comment file with stakeholder responses is available here

    In addition, the task force announced a series of industry roundtables: “The Crypto Task Force roundtables are an opportunity for us to hear a lively discussion among experts about what the regulatory issues are and what the Commission can do to solve them,” said Commissioner Hester M. Peirce.  The dates, topics, and replays when available for each roundtable are:

    View the Crypto Task Force webpage for more information.

    US Senate Banking Committee Passes the Guiding and Establishing National Innovation for US Stablecoins (“GENIUS”) Act of 2025

    On March 13, 2025, the US Senate Banking Committee (“SBC”) passed the Guiding and Establishing National Innovation for US Stablecoins (“GENIUS”) Act of 2025.

    • The legislation seeks to establish a comprehensive regulatory framework for the issuance and regulation of payment stablecoins in the USA. The bill had bipartisan support in committee and is positioned to be approved by the full Senate.
    • Related, on April 2, the House Financial Services Committee (“HFSC”) passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (“STABLE”) Act of 2025 (H.R. 2392), sponsored by Rep. Bryan Steil (WI-01the STABLE Act to establish a framework for the issuance and operation of dollar denominated payment stablecoins in the United States.

    The SBC March 13, 2025 press release is available here.

    The GENIUS Act in its entirety is available here.

    The HFSC’s STABLE Act April 2, 2025 press release is available here.

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