Paul Atkins has taken over as SEC Chair, succeeding Mark Uyeda. A new Crypto Task Force aims to develop a regulatory framework for cryptoassets. The SEC updated guidelines on shareholder reporting and reversed prior rules on shareholder proposals, giving companies more discretion. The agency also stopped defending climate disclosure rules, marking a major shift in policy.
In a significant move, Paul Atkins has officially assumed the role of Chair at the SEC as of April 21, 2025. He replaces Acting Chair Mark Uyeda, who had implemented various regulatory changes affecting public companies and institutional investors. While it remains to be seen how Atkins will shape his agenda, recent actions under Uyeda have already set some key priorities for the commission.
One of the most notable initiatives during this transition has been the establishment of a Crypto Task Force on January 21, 2025. Spearheaded by Commissioner Hester Peirce, the task force aims to create a robust regulatory structure for cryptoassets. The SEC has not only expressed intent to drop some ongoing enforcement actions but has also released supportive guidance to encourage this burgeoning market.
In another development, on February 11, 2025, the SEC’s Division of Corporate Finance issued new guidance around shareholder eligibility for filing Schedule 13G reports. This form is simpler than the Schedule 13D and is typically used by investors who do not intend to influence control over a company. The updated rules now indicate that merely discussing management strategies could be seen as exerting influence, meaning institutional investors must carefully review their engagement practices to avoid complications.
Just a day later, on February 12, the SEC released Staff Legal Bulletin No. 14M, which revises previous guidance about shareholder proposals under Exchange Act Rule 14a-8. This alteration, which reverses an earlier bulletin from the Biden era, offers companies more leeway in excluding certain proposals from proxy statements, thus reshaping the landscape of shareholder engagement.
Additionally, on March 3, 2025, the SEC expanded its accommodations for companies looking to submit draft registration statements. This change aims to enhance the nonpublic review process, reflecting a more accommodating approach from the commission. Those interested in the finer details can refer to a client alert issued on March 5 for further insights.
In a move notable for environmental advocates, on March 27, 2025, the SEC decided to cease its legal defense of climate-related disclosure rules, which mandated the reporting of climate risks and greenhouse gas emissions. Consequently, a letter was sent to the court announcing the withdrawal of its arguments around the rules, indicating a shift in the agency’s stance on climate transparency in reporting, a notable departure from previous commitments.
