New SEC Management Boldly Charts New Course

A shift in leadership at the Securities and Exchange Commission often brings significant changes in regulatory priorities and enforcement approaches. As anticipated in our firm’s EO Watch alert, “Immediate Practical Consequences of SEC-Related EOs,” President Trump’s executive action designating Commissioner Mark Uyeda as acting chair has enabled the agency to function effectively despite the Senate’s pending confirmation of former Republican Commissioner Paul Atkins as chair. The alert also foresaw that, under the expected leadership of Atkins, alongside Commissioners Uyeda and Hester Peirce, the agency would be receptive to shifting course on certain matters, particularly recent SEC actions that they had previously opposed.

Predictions Borne Out

Uyeda has confidently taken the helm and is steering the SEC in a new direction, as demonstrated by his remarks at the Investment Company Institute’s 2025 Investment Management Conference on March 17.

Among other points, Uyeda expressed a desire to move away from the “rapid changes” driven by recent “rulemaking shortcuts.” Instead, he advocated for “meaningful engagement with stakeholders,” emphasizing a return to the SEC’s traditionally accepted minimum 60-day comment period for rule proposals, as opposed to recent comment periods as short as 30 days. He also suggested that the SEC more frequently “re-propose” rules for further public comment rather than adopting final rules that differ significantly from their proposed versions. In alignment with this goal of strengthening public participation in regulatory policymaking, Uyeda hopes to see an increase in:

• Meetings between the SEC and stakeholders
• Public roundtables
• SEC requests for information
• SEC concept releases
• Advance notices of proposed rulemaking
• Investor testing to assess disclosure effectiveness

Additionally, Uyeda seeks to improve the SEC’s economic analyses, which determine whether a rule is effective, efficient, and cost-conscious. This aligns with the recent executive order encouraging federal agencies to perform better cost-benefit analyses of proposed regulations, as discussed in our article examining the regulatory implications of this policy shift.

Regarding policy development, Uyeda has asked SEC staff to consider alternatives, including withdrawing or revising its proposed safeguarding rule for customer assets held by investment advisers, particularly in light of compliance challenges related to crypto assets. Such reconsideration, therefore, is consistent with our analysis of the SEC’s evolving stance on custody regulations and its broader shift toward a more flexible approach to crypto-related compliance requirements.

Uyeda also voiced support for the SEC reconsidering rules it has recently adopted that have not yet taken effect. This development aligns with our prior analysis of the presidential directive’s impact on SEC rulemaking, as well as our discussion of the SEC’s decision to reverse course on its expanded dealer definition.

Still Important Pointers

Uyeda’s openness to shifting various SEC policies and procedures — particularly his emphasis on enhanced public engagement in regulatory development — underscores the significant influence stakeholders can have in shaping SEC policy. Moving forward, stakeholders should actively engage with the SEC by providing feedback and requesting reconsideration of rules or staff positions based on industry needs and practices.

As previously reported, many SEC staff members have left or are planning to leave, in part due to recent presidential directives. Those who remain may be reassigned to different functions or overburdened. Therefore, as previously noted, registrants and other market participants should:

• Allow as much time as possible for the SEC staff to process and respond to filings and other submissions.
• Communicate in advance with the appropriate SEC staff reviewer, branch chief, or other relevant officials to set expectations appropriately.
• Make extra efforts to explain a registrant’s plans and reasoning to the SEC staff to facilitate efficient regulatory review.

By taking these steps, stakeholders can better navigate the evolving regulatory landscape and ensure their voices are heard as the SEC adapts under its new leadership.