United States: The Great SEC Spring Clean Up–14 Proposals Wiped Away

By: Lance C. Dial, Keri E. Riemer, and Lael R. Franco

Spring is a time of renewal, and the US Securities and Exchange Commission (SEC)–under its new chairman, Paul Atkins–has shown that. On 12 June 2025, the SEC withdrew 14 proposed rules impacting funds and asset managers, including several that had been vigorously opposed by the industry. A complete list is below, but highlights include proposed rules relating to safeguarding (custody), predictive data analytics (AI), ESG-related disclosures, outsourcing and cybersecurity.

This action, early on in Chair Atkins’ administration, indicates that the SEC may be reprioritizing its focus areas. It also shows a commitment to regulatory clarity, as the SEC is not technically required to formally withdraw proposals. These withdrawals, especially with respect to the safeguarding rule, outsourcing and predictive data analytics, remove a source of uncertainty for asset managers in their strategic planning. 

Funds and advisers should bear in mind, however, that the SEC and its staff may still raise concerns about the topics addressed in the withdrawn proposed rules, such as in regulatory exams. The SEC may also propose new rules regarding the same topics in the future.

The following is a complete list of withdrawn proposed rules:

• Substantive bases for exclusion of shareholder proposals;
• Conflicts of interest associated with the use of predictive data analytics;
• Safeguarding advisory client assets;
• Cybersecurity risk management for investment advisers, investment companies and business development companies;
• Enhanced disclosures regarding ESG investment practices;
• Outsourcing by investment advisers;
• Position reporting of large security-based swap positions;
• Volume-based exchange transaction pricing for NMS stocks;
• Broker-dealer’s duty of best execution;
• Order competition rule;
• Regulation systems compliance and integrity;
• Cybersecurity risk management for broker-dealers, clearing agencies and other similar entities;
• Amendments regarding the definition of “exchange” and Alternative Trading Systems; and
• Amendments to the national market system plan governing the consolidated audit trail and its security.