Trump SEC Chair Wipes Out 14 Proposed Rules In Power Shift

“Gensler went long on regulation. Atkins just sold the whole position.”  The U.S. Securities and Exchange Commission didn’t just pivot—it did a full-blown regulatory moonwalk. Under Trump’s watch, Paul Atkins has now torched 14 major proposals that shaped the Biden-era financial landscape. Hotter than a compliance officer at a crypto startup, this sudden rollback isn’t just policy pruning—it’s a full-scale regulatory revolution. While Wall Street’s popping champagne, investor advocates are reaching for the fire extinguisher. This isn’t just a policy reset. It’s a philosophical rebrand—and it’s rewriting the rulebook in real time.

Past is Prologue

Atkins made headlines on June 20, 2025, when he withdrew 14 pending rule proposals, many of which were central to the Biden-era regulatory agenda. These rules weren’t collecting dust—they were introduced between 2022 and 2024 to tackle the evolving risks of today’s markets, including AI, crypto, ESG, and private funds.

Here’s the breakdown of what’s now on the cutting-room floor:

Transparency and Trading Practices

• Short Sale Disclosure Rule – Required monthly reporting of significant short positions by institutional investors.
• Securities Lending Transparency Rule – Aimed to standardize and increase the frequency of disclosures in securities lending markets.
• Rule 10b5-1 Reforms – Proposed tighter controls and disclosures around pre-scheduled insider trading plans.

ESG and Governance

• Climate Risk Disclosure Rule – Mandated public companies to disclose greenhouse gas emissions and climate-related financial risks.
• Board Diversity Transparency Rule – Required demographic disclosures on company board composition.

Crypto and Digital Assets

• Custody of Digital Assets Rule – Placed new obligations on how investment advisers hold cryptocurrencies and related assets.
• Predictive Data Analytics Rule – Addressed how broker-dealers use AI tools and algorithms in ways that may prioritize firm profits over investor interests.

Private Funds Oversight

• Private Fund Audit Rule – Would have made annual audits of private funds mandatory.
• Fee and Expense Transparency Rule – Required quarterly reports detailing fees and performance.
• Preferential Treatment Rule – Restricted giving certain investors better terms unless such arrangements were disclosed to all.

Market Structure and Execution

• Best Execution Rule – Added new obligations for broker-dealers to secure the best trading outcomes for customers.
• Payment for Order Flow Reform – Targeted the controversial practice of routing trades in exchange for fees.
• Wholesaler Competition Rule – Intended to increase quote competition for retail orders.

Other

• SPAC Disclosure Rule – Proposed enhanced disclosures in Special Purpose Acquisition Company transactions, focusing on dilution and conflicts of interest.

These proposals were introduced between 2022 and 2024 and were central to the Gensler SEC’s effort to address new financial market realities. With their removal, the Trump SEC signals a distinct shift toward market freedom and lighter oversight.

Present Tense

“This is a return to the SEC’s roots—promoting innovation, not suffocating it,” said an agency spokesperson, echoing Atkins’ free-market ethos. The withdrawals were lauded by industry groups like the Investment Company Institute and crypto advocates like the Blockchain Association. “Good riddance,” said K&L Gates partner Lance Dial, reflecting broader relief that the SEC was “back within the boundaries of its mandate.” But investor advocates aren’t buying optimism. Benjamin Schiffrin from Better Markets warned the changes could be “very harmful to investors.” Critics say the rollback hollows out protections meant to prevent another Archegos-style blowup or AI-fueled advice gone rogue.

Future Forecast

Atkins hasn’t yet rolled out his regulatory vision, but early signals suggest a shift toward:

• Principles-based guidelines (not rulebooks thick enough to stun a moose)
• Voluntary disclosure over mandatory filings
• Self-policing by industry ‘best practices’

What does this mean for market players?

• Crypto’s back – With the “exchange” definition proposal off the table, decentralized platforms have room to run.
• SPACs might rise from the ashes – With fewer hoops to jump, deal flow could accelerate.
• Private funds just got a hall pass – Less red tape means more bespoke investor deals, but less visibility.

But don’t be fooled, this freedom comes with a price. Without standardized disclosures, professionals will have to dig deeper to compare climate strategies, fund performance, or board diversity. It’s a market running on vibes—and your due diligence game better be on point. To revisit earlier regulatory updates on SEC’s Paul Atkins, Promises Rational Regulation for Crypto

Laissez-Faire or Letting Loose?

Let’s call it what it is: this is not just a rollback—it’s a full-on regulatory exorcism. And while the free-market crowd is tossing confetti, others see storm clouds on the horizon. Will this lead to a smarter, sleeker market? Or set the stage for the next financial facepalm? Only time and Q3 earnings will tell.  For more straight-shooting insights, check out MYCPE ONE Insights.