In a speech delivered in her personal capacity, U.S. Securities & Exchange Commission Commissioner Hester Peirce said recent Commission actions reflect an effort to keep securities regulation within the constitutional and statutory limits set by Congress. She pointed to the end of the policy that barred settling parties from denying the SEC's allegations, the proposal to rescind the climate-related disclosure rules, the review of Regulation S-K to refocus disclosure on materiality, the joint SEC and Commodity Futures Trading Commission proposal to revise Form PF, the concept release on the Consolidated Audit Trail's privacy implications and the attempt to tie crypto regulation and enforcement more closely to existing statutes. Peirce argued that further recalibration is needed. She questioned the constitutionality of the investment adviser pay-to-play rule, urged restraint in interpreting the dealer definition, Rule 15c2-11, the Foreign Corrupt Practices Act provision on internal accounting controls and Section 206(4) of the Advisers Act, and said the SEC should treat disgorgement as constrained by equitable limits. Referring to the Supreme Court's decision in Sripetch v. SEC, she noted that disgorgement must be limited to a defendant's net profits and returned to wronged investors, although the Court held that the SEC does not need to show a pecuniary loss.
U.S. Securities & Exchange Commission2026-06-09
U.S. Securities & Exchange Commission Commissioner Peirce says recent SEC actions reflect narrower agency authority and flags pay-to-play concerns
U.S. Securities & Exchange Commission Commissioner Hester Peirce, speaking in her personal capacity, said recent Commission actions show an effort to keep securities regulation within constitutional and statutory limits, citing changes to settlement practices, proposed rescission of climate-related disclosure rules, a review of Regulation S-K, revisions to Form PF, a Consolidated Audit Trail privacy concept release and closer alignment of crypto oversight with existing statutes. She argued that further recalibration is needed, questioned the constitutionality and scope of several rules and provisions, and stressed that SEC disgorgement should remain constrained by equitable limits and the Supreme Court’s Sripetch decision.