Democrats have made the push for a political spending rule a key part of their policy agenda. Campaign finance disclosures was a central issue in a package of proposals Democrats unveiled last week that will likely bolster support from progressive voters ahead of the November election.
While some companies voluntarily provide information on their political spending, the SEC would likely need to create a rule for all investors to be able to get that kind of information. Opponents have said such a rule would be unconstitutional; advocates say it would increase transparency and hold companies more accountable to their shareholders.
Disclosure requirements on corporate political spending has also caused ongoing upheaval for the Senate Banking Committee. The panel delayed a vote earlier this year on advancing several key financial services nominees, including two for SEC candidates, after Democrats raised concerns that they wouldn’t push for political spending requirements. The delay has meant the SEC is no closer to having a full panel of officials who get a say on rules for public companies and whether to punish individuals and corporations for violations of securities laws.