SEC Legal Challenges: Clash of Regulations and Industry

U.S. industry and groups are challenging SEC rules under Chair Gary Gensler. Key areas affected include Nasdaq board diversity, proxy voting, share buybacks, private funds, short-sale disclosures, Treasury market regulations, climate disclosures, and SEC's AI-related proposals. These regulatory disputes have significant implications for Gensler's agenda.

In a wave of legal actions, U.S. industry groups are targeting rules imposed by the Securities and Exchange Commission (SEC) under the leadership of Chair Gary Gensler. The lawsuits have major implications for several regulations on his agenda, according to court documents and legal experts.

Significant challenges involve the Nasdaq corporate board diversity rule, which is under scrutiny after the conservative Alliance for Fair Board Recruitment sued the SEC. Other legal actions include disputes over proxy voting, rejected by the Sixth Circuit Court of Appeals, and regulations on share buybacks recently overturned by the Fifth Circuit.

The Managed Funds Association has been active, leading suits against increased disclosures for private funds and short sales. Meanwhile, the SEC's climate disclosures rule faces combined legal challenges consolidated in the Eighth Circuit Court, reflecting growing resistance to Gensler's regulatory stance.

(With inputs from agencies.)