ESG: The SEC announced plans in 2022 to require companies to disclose the risks that environmental, social and governance factors pose to their operations in annual reports and other documents, in an attempt to address concerns about “greenwashing.”
This ESG disclosure proposal would have required funds presenting themselves as “ESG” to disclose certain details of their strategy, such as how they use ESG and to what extent, in order for investors to make informed decisions about ESG investments.

Cybersecurity: Proposed in 2022, this proposal would have required broker/dealers to implement written cybersecurity policies that identify their cybersecurity risks. The rule would have required firms, investment advisers and broker/dealers to enhance cybersecurity defenses and report major incidents and inform the SEC of a major cyber incident within 48 hours.

Crypto: Proposed in 2023, the crypto custody rule would have upped existing Custody Rules under the Investment Advisers Act of 1940. It was broadly framed to apply to all client assets, but was particularly significant for crypto as it aimed to bring digital assets more explicitly under SEC custody requirements. Investment firms would be required to hold all client assets, including crypto, with a “qualified custodian,” which typically meant regulated banks or broker-dealers.

In January, the SEC launched a crypto task force dedicated to developing a comprehensive and clear regulatory framework for crypto assets, naming “CryptoMom” Hester Peirce to lead the new task force. The task force was introduced amid expectations of a shift in the SEC’s approach to crypto under the crypto-friendly Trump administration.

The SEC has also withdrawn a “safeguarding client assets” proposal that would revamp rules for investment advisers to keep client assets with qualified custodians and a “best execution” rule that would have redefined how brokers ensure retail investors get the best deal on trades.

"I commend the SEC's decision to withdraw several misguided Gensler-era proposed rulemakings,” said Chairman French Hill (R-AR), whose House Committee sent the letter to the SEC. “For too long, consumers and financial institutions have faced unnecessary burdens imposed by overreaching federal regulators. This announcement is a meaningful step towards restoring balance, protecting investors, and encouraging innovation."

Related: Vanguard, BlackRock pause public meetings, in wake of new SEC rule on ESG investing

Last week, the SEC also appointed Brian Daly as director of the SEC’s Division of Investment Management, effective July 8, replacing Acting Director Natasha Vij Greiner, who will depart on July 4.