SEC Withdraws Significant Number Of Rule Proposals

Key Takeaways

• Last week, the SEC withdrew 14 proposed regulatory actions that had been pending for several years, including a number of proposed rules that would have had a major impact on investment advisers and funds.

• The proposed rules that were withdrawn include those commonly referred to as the Investment Adviser Outsourcing Rule, the ESG Rule, the Cybersecurity Rule, the Safeguarding Rule, and the Artificial Intelligence Rule.

• Although widely anticipated, the withdrawals are welcome news for the industry, as certain of the proposed rules would have introduced considerable implementation challenges.

On Thursday, June 12, 2025, the SEC formally withdrew 14 notices of proposed rulemaking, including several significant proposals relating to investment advisers that had been issued between March 2022 and November 2023 under Chair Gensler's leadership.¹ The SEC indicated that it does not intend to issue final rules with respect to these