Regulatory Shift after 2024 Election
Following Donald Trump’s victory in the presidential election, many in the finance and advisory sectors anticipate a significant regulatory shift, likely starting with SEC Chair Gary Gensler’s departure, according to Financial Advisor magazine. Gensler, a Democratic insider who served as CFO for Hillary Clinton’s 2016 campaign, is widely expected to resign ahead of Trump’s inauguration.
Legal and industry experts suggest Gensler may step down to allow Trump to install new leadership aligned with his deregulation goals. Trump has previously vowed to dismantle federal regulations aggressively, including a promise to cut ten regulations for every new one introduced, marking a major increase from his earlier two-for-one regulation rollback.
Possible Replacement for SEC Chair Gensler
Howard Lutnick, CEO of Cantor Fitzgerald and co-chair of Trump’s transition team, has been floated as a potential replacement for Gensler, although some speculate he may be considered for a cabinet position.
Under new leadership, analysts expect the SEC to stall or abandon several of Gensler’s rule proposals, such as the predictive data analytics regulation, viewed by some as overly prescriptive.
Gail Bernstein of the Investment Adviser Association reportedly notes that any existing SEC proposals are unlikely to advance in their current form before Trump takes office, as the sitting Biden administration will face strong pressure to avoid pushing contested regulations.
DOL Changes
Changes are also expected at the Department of Labor (DOL), where acting Secretary Julie Su, known for her tenure as California’s labor secretary, is likely to be replaced. Her handling of pandemic-era unemployment benefits, which critics allege led to substantial fraud losses, has led to prolonged Senate confirmation delays.
Trump’s administration is expected to reconsider or delay Biden-era DOL proposals, including a contentious fiduciary rule for advisors, which has already been challenged in court. Duane Thompson, a compliance consultant, reportedly predicts that Trump may issue an executive order halting all Biden regulations in progress, including SEC rules, pending new appointees.
ESG Regulations in Jeopardy
According to the article, Environmental, Social, and Governance (ESG) regulations are also in jeopardy under Trump’s expected policies. Fred Reish of Faegre Drinker reportedly speculates that ESG rules, which align with Biden’s administration priorities, may be among the first regulations revised or repealed by the DOL under new leadership, reflecting a shift toward less regulatory interference in investment decision-making.
Free Consultation
This information is all publicly available and provided by The White Law Group. If you have suffered investment losses, the securities attorneys at The White Law Group may be able to help you. For a free consultation to learn about your options, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
Last modified: November 8, 2024
