What's Happening?
The Securities and Exchange Commission (SEC) released its Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions, outlining upcoming rulemaking initiatives. The agenda reflects a restrained approach to rulemaking, consistent with statements from SEC Chair Atkins. Key initiatives include potential amendments to facilitate capital formation, modernize the Custody Rule, and clarify the definition of 'dealer.' The agenda also suggests possible changes to the 'small entity' definition under the Regulatory Flexibility Act, which could impact investment advisers and companies.
Why It's Important?
The SEC's agenda signals potential regulatory shifts that could affect investment advisers and the broader financial industry. Amendments to the Custody Rule, particularly regarding crypto assets, could address operational challenges and provide clarity. Changes to the 'small entity' definition may reduce regulatory burdens for smaller firms. These initiatives could influence market practices, investor access, and compliance requirements, impacting how advisers and companies operate within the U.S. financial system.
What's Next?
The SEC will continue to develop and refine these rulemaking initiatives, with expected action dates ranging from late 2025 to 2026. Stakeholders, including investment advisers and industry groups, may engage with the SEC to provide feedback and influence the final rules. The agenda's focus on crypto assets and capital formation suggests ongoing attention to emerging market trends and investor needs. The SEC's actions will be closely watched for their impact on regulatory clarity and market dynamics.
