The U.S. Securities and Exchange Commission Looks Ahead to 2025 

After a very busy few years, the SEC is delaying issuance of several rulemakings important to the industry. According to its Reg Flex Agenda, the SEC next year will repropose rather than adopt  its Predictive Data Analytics (PDA) Rule. Although the SEC is making changes to their initial proposal, this rule remains a priority for Chair Gensler and one we are monitoring closely. IPA has been outspoken on this issue and continues to closely follow what changes the SEC may be making.  

Similarly, we are very closely monitoring the SEC’s work on changes to its Accredited Investor definition. Our advocacy focuses on maintaining or expanding investor access to alternative investment funds. The SEC has moved its rulemaking on the definition to 2025. In advance of this, IPA has formed a coalition of like-minded stakeholders in the financial industry and is leading and informing the debate on this issue as the Commission’s work advances. Read more in this recent Q and A with the Angel Capital Association.  

The SEC has stayed implementation of its Climate Disclosure Rule in the wake of several lower court challenges. The U.S. Court of Appeals for the Eighth Circuit is overseeing the next round of litigation which now encompasses nine different challenges. The court set a series of summer deadlines for briefs and all parties are now awaiting the court’s announcement on when oral arguments will be held. Given IPA’s longstanding concerns with the rule, we are following the litigation closely and will keep you informed.  

We’ve also been monitoring the latest round of appointments to the SEC’s Investor Advisory Committee. Six new members were announced this week:

• George Georgiev, Associate Professor of Law, Emory Law School

• R. Craig Knocke, Principal, Turtle Creek Management

• Amy C. McGarrity, Chief Investment Officer/Chief Operating Officer, Colorado Public Employees’ Retirement Association

• Jennifer J. Schulp, Director of Financial Regulation Studies, Cato Institute’s Center for Monetary and Financial Alternatives

• Andrea Seidt, Ohio Securities Commissioner

• Alvin Velazquez, Associate Professor of Law, Indiana University Maurer School of Law

IPA will continue to engage with the Committee as it sets its agenda.  

It’s also important to keep in mind that significant changes to the Commission’s makeup are potentially months away, and uncertainty over the future composition of the Commission has already begun.  

Regardless of who takes the White House, Commissioner changes are expected. Commissioner Caroline Crenshaw (D), for example, has a term that expires this year. She has been renominated but her reconfirmation is largely subject to the political dynamics of the Senate post-election.  

Further, Commissioner Hester Peirce’s (R) term expires in 2025.  

As a result, the process of nominating and confirming new Commissioners and the potential appointment of a new chair or acting chair will take up much of early 2025.  

The IPA is already preparing to quickly engage with incoming commissioners in order to educate them early on issues critical to the retail alternative investment fund industry and its investors.