In talking with our members about the status of much-anticipated SEC proposals, we hear a common sentiment: “A little less conversation, a little more action please.” Of course, rulemaking is an inherently lengthy and complex process – which in many ways is a good thing – and I don’t want to sound ungrateful for the positive things we’ve seen in terms of helpful guidance and practical applications of the rules as they currently stand. (And to be fully accurate, we do appreciate the conversation – we just also want to see the rules – but this isn’t nearly as catchy as the Elvis quote.)

When it comes to getting modernized rules on the books though, the unfortunate truth is that the SEC no longer has exclusive control over the timing of its proposals. Due to the February 2025 executive order limiting the power of independent agencies, everything has to pass through the White House’s Office of Information and Regulatory Affairs (OIRA). This Global Policy Watch blog from last August gave a 6-month update on how the new review process was working:

Also unclear at the time of the Trump order’s issuance was whether OIRA review would substantially delay independent agency rulemakings. Indeed, fear of undue delay was one main objection urged against the extension of OIRA review to independent agencies. But the experience of the last six months suggests that OIRA review does little to delay independent agency rulemakings. OIRA review of independent agency rulemakings (excluding rulemakings by the sui generis CFPB) lasted an average of 17 days, and no review took more than 29 days. To date, then, OIRA has reviewed independent agency rulemakings in a fraction of the ninety days allotted to it for regulatory reviews under the Clinton-era order.

I’m skeptical that this additional step is operating so smoothly – but with respect to SEC proposals, I hope I’m proven wrong (or at least, that some rules might be close to seeing the light of day). This dashboard shows which rules have been sent for review. Proposals on crypto assets and semiannual reporting were sent in late March – so if the average turnaround time applies, we could see those any day! The blog explains that Commissioners aren’t voting on rules until after they’ve made it through OIRA review.

– Liz Dunshee