The Securities and Exchange Commission is expected to release its first-ever digital asset framework through its new Crypto Task Force. This effort aims to bring clearer regulatory oversight to the crypto industry, potentially enhancing investor protection and market fairness.

A bill (S. 1358 TASK Act) proposes to require the SEC to mandate reporting on companies' supply chain sourcing and due diligence practices, specifically targeting links to forced labor in Xinjiang, China. The legislation is intended to increase transparency and accountability in supply chains and promote ethical business practices.

A bill introduced in the 119th Congress (S.1358) would require the Securities and Exchange Commission to mandate reporting on companies' sourcing and due diligence activities, specifically focusing on supply chains linked to forced labor from Xinjiang, China. This legislative push aims to improve transparency and curb unethical supply chain practices.

A study published on ScienceDirect reveals that the SEC's enforcement activities, particularly investigations into financially misaligned firms, are influenced by partisan bias. The research highlights that political appointees and career concerns among SEC commissioners contribute to differential treatment, with misaligned firms facing more intensive scrutiny and harsher penalties, thereby calling into question the agency's impartial regulatory mission.

Following the designation of SEC Commissioner Mark Uyeda as Acting Chair on January 21, 2025, the SEC initiated a series of key policy updates. These include the formation of a Crypto Task Force, updated guidance on disclosure and compliance filings, temporary exemptions related to short sale reporting, revised shareholder proposal guidelines, and the launch of a Cyber and Emerging Technologies Unit to combat cyber fraud and protect investors. These reforms collectively aim to enhance regulatory clarity, investor protection, and modernized oversight over emerging digital and cyber-related risks.

On January 21, 2025, SEC Acting Chairman Mark T. Uyeda announced the launch of a new cryptocurrency task force, led by Commissioner Hester Peirce. The move aims to establish a comprehensive regulatory framework for digital assets, marking a shift from the SEC's previous reliance on enforcement actions to a more structured rulemaking process.

On January 21, 2025, Acting Chair Uyeda launched a Crypto Task Force led by Commissioner Hester Peirce to develop a comprehensive regulatory framework for cryptoassets. At the same time, the SEC dismissed existing enforcement actions and reversed progressive guidance on shareholder proposals and climate disclosure rules, weakening regulatory oversight.

On October 15, 2024, a compliance guide highlighted the SEC's enforcement of Rule 206(4)-5, which is designed to curb pay-to-play practices among investment advisers by restricting political campaign contributions by covered associates. The rule includes measures such as a two-year time-out on receiving compensation if prohibited contributions are made, alongside provisions for screening, return of contributions, and regular compliance audits to mitigate undue political influence.

The SEC is actively enforcing the Pay-to-Play Rule to prevent improper political contributions by investment advisers, as demonstrated by a recent case involving a $4,000 contribution triggering enforcement measures. This action underscores the regulator’s commitment to maintaining a fair and transparent political process.

Following a ruling against it by a three-judge appellate panel over its in-house enforcement procedures, the SEC requested Supreme Court review to defend its established process for adjudicating securities law violations, a move seen as upholding regulatory protections amid conservative legal challenges.

A GAO report from July 2023 evaluates the SEC's conflict minerals disclosure rule, noting that some companies report incomplete supply chain information and may perceive a lack of enforcement. This raises concerns about the SEC’s effectiveness in compelling transparency to deter human rights abuses linked to conflict minerals.

The SEC has established a Crypto Task Force to bring clarity to the application of federal securities laws in the crypto asset market. The task force, led by Commissioner Hester M. Peirce, aims to foster innovation while protecting investors and ensuring transparent regulatory practices through public engagement and coordination with other regulators.

A GAO report outlined that in 2010 the SEC finalized and implemented a rule prohibiting investment advisers from providing compensated advisory services to government clients within two years of making political contributions. The measure is intended to prevent pay-to-play practices and enhance transparency in political financial activities, with the report confirming the SEC’s adherence to applicable procedural requirements.

The SEC’s Pay-to-Play rule (Rule 206(4)-5) strictly limits political contributions by investment advisers to avoid conflicts of interest in awarding government contracts. This regulatory measure aims to promote transparency, fairness, and integrity in government-related financial engagements, thus reducing the risk of authoritarian favoritism.