A bill introduced in the 119th Congress proposes that the SEC require companies to report on their sourcing and due diligence activities related to products linked to forced labor in Xinjiang, China. This measure aims to enhance transparency and accountability in supply chains.

A bill, S. 1358, introduced in Congress on April 4, 2025, would require the SEC to enforce reporting among companies on their sourcing and due diligence activities for supply chains linked to forced labor in Xinjiang, China. This legislative move aims to improve transparency and accountability in supply chains tied to unethical labor practices.

The SEC's agreement to retain $50 million of the Ripple fine while refunding the remaining penalty marks the end of a prolonged legal battle. Critics argue this compromise may signal regulatory leniency towards corporate malfeasance and undermine robust investor protection.

The SEC issued new guidance that permits companies to exclude shareholder proposals related to lobbying transparency while simultaneously approving energy finance proposals that require major banks to disclose their energy supply ratios. This mixed ruling has raised concerns among critics that the SEC is favoring corporate interests and enabling regulatory capture, even as it advances transparency in sustainable finance.

The SEC approved rulings that allow major corporations to exclude shareholder proposals related to lobbying, raising concerns over diminished corporate transparency and increased influence of corporate interests aligned with a deregulatory, authoritarian agenda.

The SEC approved a decision allowing companies to block shareholder proposals on lobbying activities, a move that undermines transparency and accountability in corporate political conduct. This decision raises concerns over enhanced corporate influence and potential regulatory capture, thereby facilitating an environment where corporate complicity in authoritarian practices might flourish.

Under pressure from the Trump administration, the SEC halted several progressive rulemaking initiatives—including ESG disclosures, climate-related rules, and board diversity requirements—to refocus its efforts on deregulation and capital-raising measures.

Anticipated leadership changes and regulatory rollbacks at the SEC under the Trump administration could undermine progressive regulatory initiatives such as climate disclosure rules and stringent digital asset enforcement. With Chairman Gary Gensler expected to step down and a politically appointed interim leadership set to take charge, the agency is likely to align its policies with partisan directives, raising concerns about independent oversight and potential regulatory capture.

A ScienceDirect article discusses theoretical models suggesting that the SEC may be subject to political influence through wealth transfers in exchange for political support, potentially undermining its impartial enforcement role.

The SEC's use of administrative law judges in its enforcement action against hedge fund manager George Jarkesy is now under scrutiny as a Supreme Court hearing on November 29 may reshape the legal landscape. The case raises concerns about the potential undermining of institutional safeguards that prevent authoritarian influences, as critics argue that overturning this practice could pave the way for partisan interference in federal civil service protections.

Bipartisan lawmakers have called on the SEC to investigate allegations that Shein, a Chinese fast fashion retailer, may be using forced labor from China's Uyghur population in its supply chain ahead of its reported IPO. This request highlights concerns about the SEC's role in enforcing ethical labor practices and protecting human rights in the global marketplace.

On May 2, 2023, a bipartisan group of US House representatives urged the SEC to require Chinese fast‐fashion giant Shein to certify that its products are free from forced labor in Xinjiang. The SEC did not respond to requests for comment, reflecting a concerning lack of proactive engagement on a critical human rights issue.

A 2022 academic study indicates that, despite examining the impact of political connectedness, the U.S. Securities and Exchange Commission remains unbiased and free from regulatory capture. This suggests that the SEC upholds robust enforcement actions, which aligns with anti-authoritarian values.

On April 28, 2022, the SEC charged Brazilian mining company Vale with misleading investors about safety issues prior to a dam collapse that resulted in numerous deaths and significant environmental harm. This enforcement action, emerging shortly after the creation of an ESG Task Force within its Division of Enforcement, signals a broadened regulatory focus that integrates human rights and environmental accountability into corporate oversight.