Gary Gensler says he won’t rush the US Securities and Exchange Commission’s sweeping agenda to get ahead of possible political changes in Washington.
The SEC chair said Wednesday that Wall Street’s main regulator won’t adjust plans for new rules based on November’s looming US elections. Although the agency has finalized almost three dozen rules during the Biden administration, about 20 remain and many of those are opposed by conservative Republicans.
“I’m not doing this against the clock,” Gensler said during an interview on “Balance of Power” on Bloomberg Television. “It’s about getting it right and allowing staff to work their part.”
Major rules proposed under Gensler that have yet to be finalized include requirements for corporations to disclose more about their climate impact and an overhaul of how stocks trade. If those regulations, or others, aren’t completed in the next few months, they could be repealed under a congressional maneuver should Republicans consolidate power in November.
The climate-disclosure plan has drawn intense pushback from corporations, farmers and conservative Republicans. The most resistance centers around so-called “Scope 3” reporting on greenhouse gas emissions, which include pollution from a company’s supply chain. It’s unclear whether the final plan will include that provision.
Under the commission’s bureaucratic process, the agency must vote to propose a rule, take public comment, and then vote again after making changes. On Wednesday, Gensler said the agency typically takes about 18 to 24 months, on average, to move from a proposed to final rule.
So far in 2024, the agency has already finalized more stringent regulations on so-called blank check companies, a spate of regulations for hedge funds and new requirements for Treasuries trading.
A set of measures to overhaul equity market structure, from reducing the bid-ask spread on stocks to mandating greater disclosures about the pricing and execution provided by brokers, are also hot-button issues on the agency’s agenda. The plans have drawn criticism from a range of players in the stock market.
This article was provided by Bloomberg News.