Securities Regulation Daily Wrap Up, STRATEGIC PERSPECTIVES—Securities Regulation Daily’s top 10 developments for September 2025, (Oct 6, 2025)
Organizations Mentioned:Better Markets | Nasdaq | Nyse Arca, Inc. | Secretary of Labor
In case you missed the in-depth coverage in the September issues of Securities Regulation Daily, we have provided a recap of the most notable stories.
The SEC and CFTC released plans for slashed operations during the broader federal government shutdown, which was triggered by a lapse in appropriations on October 1. The shutdown is expected to last until appropriations are enacted.
The shutdown temporarily curbed ambitious rulemaking agendas. The SEC will consider possible rules to facilitate crypto trading and ease possible barriers to capital formation. SEC Chair Paul Atkins signaled he is interested in reducing the frequency of public company reporting from quarterly to every six months, as President Donald Trump has expressed an interest in.
Atkins was also asked by House Financial Services Committee Republicans to act quickly to facilitate the trading of private assets in retirement accounts. But SEC Commissioner Caroline Crenshaw cautioned against a rush to expand access to private assets. She noted investor protection concerns and pointed out that the SEC recently extended the Form PF compliance date for the third time, delaying the availability of important information.
The SEC also approved exchange rules to streamline approval of exchange-traded products (ETPs) based on commodities, including crypto. Previously, the SEC approved each individual ETP application. Under the new fast-track generic listing standards, an exchange merely has to post certain information on its website regarding the ETP within five business days after ETP trading starts.
But there is one rule the SEC is not acting on: its hotly contested climate disclosure rule. The SEC told the Eighth Circuit it did not plan to proceed with the rule. The appellate panel then held petitions for review in abeyance until the SEC withdraws or otherwise acts on the rule.
Meanwhile, in a push to “get back to basics,” the CFTC issued a concept release on event contracts and plans to eliminate various reporting requirements. Along with operating with about nine percent of its normal staff during the shutdown, the CFTC is also down to one member of the commission, Acting Chairman Caroline Pham, raising questions about the agency’s ability to get rules done.
The SEC and CFTC are eager to work together to harmonize rules. Pham and Atkins released a joint statement announcing a “new beginning for coordination.” They pledged to work together on 24/7 markets, event contracts, perpetual contracts, portfolio margining, innovation exemptions, and decentralized finance (DeFi). They also held roundtables to discuss regulatory harmonization.
While the government shutdown has thrown a massive wrench in the works, it is only temporary. When the government reopens, the SEC and CFTC will be ready for business.
1. EXCHANGES AND MARKET REGULATION
Government shutdown will curtail many SEC functions
The failure of federal lawmakers to agree on either an omni- or mini-bus appropriations bill or to agree on the terms of a continuing resolution to keep the government open has resulted in a partial federal government shutdown. The Senate will likely take several votes in the near term to attempt to resolve the matter, but the ultimate length of the shutdown remains uncertain. Also, it has been widely reported that the Trump administration may bypass the now familiar employee furloughs during the shutdown and instead move directly to eliminate some jobs. As a result, if the shutdown lasts for an extended period of time, it may become difficult to predict how some agencies will function once the government reopens. See our full coverage.
2. CFTC NEWS AND SPEECHES
CFTC 'severely curtails' operations during broad U.S. government shutdown
As part of an October 1 suspension of many federal government operations, the CFTC will “severely curtail its operations” and “expects that the vast majority of the agency’s operations will cease.” The CFTC will be reduced to approximately 49 of 543 employees. See our full coverage.
3. SEC NEWS AND SPEECHES
SEC overhauls Reg Flex agenda with focus on crypto, deregulation
Among the 23 items on the SEC’s Spring 2025 Regulatory Flexibility Act agenda are rules on the offer and sale of crypto assets, modernization of the shareholder proposal process, and “rationalization” of disclosure. The agenda is a near-complete overhaul that retains only 3 of the 31 rules from the spring 2024 agenda. Chairman Paul Atkins said the withdrawn items “do not align with the goal that regulation should be smart, effective, and appropriately tailored within the confines of our statutory authority.” See our full coverage.
4. PUBLIC COMPANY REPORTING AND DISCLOSURE
Atkins indicates SEC likely to propose rule changes on Form 10-Qs
The market can decide what the “proper cadence” is for public company reporting and it would be a “good way forward” for the SEC to propose rule changes, said SEC Chairman Paul Atkins in a September 19 interview on CNBC. Atkins addressed questions following a suggestion by President Trump that companies should report on a half-yearly basis rather than quarterly. See our full coverage.
5. PRIVATE EQUITY NEWS
House FSC Republicans ask Atkins to act quickly on Trump’s 401(k) order
Nine republican members of the House Financial Services Committee, including its chairman, wrote to SEC Chairman Paul Atkins in support of President Trump’s executive order on allowing alternative assets in 401(k)s. The lawmakers urged the SEC to act swiftly on the order’s direction to work with the Secretary of Labor and to make any necessary changes to current rules and guidance. Atkins recently said in an interview that he supports the executive order. See our full coverage.
6. SEC NEWS AND SPEECHES
Crenshaw urges SEC to pump brakes on efforts to facilitate access to private markets
The SEC is recklessly blurring the separation between public and private markets without regard to the risks and current performance of those markets relative to public markets, according to SEC Commissioner Caroline Crenshaw. In remarks to the Better Markets academic advisory board annual conference, she lamented that the Commission failed to right-size the regulatory approach to private markets in recent decades, now leaving retail investors exposed to risks they are not prepared to face. See our full coverage.
7. EXCHANGES AND MARKET REGULATION
Three exchanges get SEC’s approval to adopt listing standards for crypto asset ETPs
The SEC voted to approve proposed rule changes from Nasdaq, Cboe BZX Exchange, and NYSE Arca that will allow them to adopt generic listing standards for exchange-traded products that hold spot commodities, including digital assets. The Commission said that the exchanges may now list and trade commodity-based trust shares that meet the requirements of the approved generic listing standards without submitting a proposed rule change to the agency under 1934 Act Section 19(b). See our full coverage.
8. ESG NEWS
Eighth Circuit continues hold on SEC’s climate disclosure rule until agency acts
The Eighth Circuit issued a new order continuing a hold on petitions for review of the SEC’s climate disclosure rule, which is currently stayed as part of a broadly litigated rule challenge. The petitions will be held in abeyance until the SEC undertakes notice-and-comment rulemaking or renews its defense of the rules. See our full coverage.
9. CFTC NEWS
CFTC announces ambitious regulatory agenda with new focus on event contracts
The CFTC has published its Spring 2025 rule list indicating current rulemaking priorities. There were extensive changes from the Fall 2024 rule list, including 15 additions and 9 removals, while 11 items remained unchanged. See our full coverage.
10. EXCHANGES AND MARKET REGULATION
SEC, CFTC pledge to cooperate on laundry list of rulemaking goals
The SEC and the CFTC have pledged to work together to ease regulatory mandates across three areas: the facilitation of crypto and decentralized finance (DeFi), freeing up capital and reducing costs related to portfolio margin, and clarifying U.S. rules for event contracts. The agencies will hold a joint roundtable to explore these possibilities on September 29, 2025. However, it is unclear how soon and to what extent the agencies could jointly deliver on these commitments beyond receiving public input and possibly issuing new staff guidance given that the CFTC has just one commissioner, a state of affairs that may last for some time even after a permanent chair is confirmed. See our full coverage.
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