On July 15, 2022, the Committee released its first in a series of visual diagrams designed to track the unprecedented scale and complexity of recent rulemaking activity by the U.S. Securities & Exchange Commission (the “SEC”).

 

The Committee’s “Rulemaking Incidence Diagram” depicts proposed and final SEC rulemaking actions taken under SEC Chairman Gary Gensler, as well as the market participants affected by each rulemaking. The Diagram represents the overall impact on U.S. capital markets from the SEC’s recent rulemaking agenda, showing that the SEC has proposed or finalized 26 substantive rulemakings over the compressed timeframe of the approximately 15 months following Chairman Gensler’s confirmation.

 

The Committee has also compared the overall incidence of rulemaking under Chairman Gensler to the rulemaking agenda over the comparable time period for each of the past three chairmanships, including those of Mary L. Schapiro, Mary Jo White, and Walter “Jay” Clayton, showing that this recent SEC rulemaking activity substantially exceeds the comparable periods of prior administrations.

 

Hal S. Scott, President of the Committee and Emeritus Nomura Professor of International Financial Systems at Harvard Law School, commented: “Owing to the scale and furious pace of the SEC’s rulemaking agenda, there is a substantial risk that the SEC has not fully considered the overall impact of these reforms on U.S. capital markets and specific types of market participants. The SEC should significantly slow its pace and allow substantial time to process the myriad and diverse comments it is receiving on these proposals. There is no crisis in our capital markets requiring this unprecedented scale of change.”

The diagram and accompanying statement are available here.

The diagram is also available as a stand-alone image here.