Weekly RoundUp
May 19, 2022

SEC Extends and Reopens Comment Periods for Three Proposed Rules

In This Weekly Roundup Issue. The U.S. Securities and Exchange Commission (SEC) extended the comment period on proposed rulemaking regarding climate-related disclosures, and reopened the comment period on proposed rulemaking regarding private fund advisers and regulation ATS; and the Consumer Financial Protection Bureau (CFPB) announced that it will periodically issue Consumer Financial Protection Circulars. These and other developments are discussed in more detail.

The Roundup will be on hiatus during the weeks of May 23 and May 30 due to the Memorial Day Weekend holiday. We will resume publication on Thursday, June 9.

Regulatory Developments

SEC Extends Comment Period for Proposed Rules on Climate-Related Disclosures, Reopens Comment Periods for Proposed Rules Regarding Private Fund Advisers and Regulation ATS

On May 9, the SEC announced an extension of the comment period for the proposed rulemaking, “Enhancement and Standardization of Climate-Related Disclosures for Investors,” until June 17, 2022. The scope and comment process for the proposed rule remains as stated in the original Federal Register notice of April 11, 2022, and as discussed in a previous Goodwin client alert. In addition, the SEC announced that it will reopen the comment periods on two other proposed rules, one to enhance private fund investor protection and the other to include significant Treasury markets platforms within Regulation ATS, for 30 days.

“Today, the Commission acted to provide the public with additional time to comment on three proposed rulemakings that have drawn significant interest from a wide breadth of investors, issuers, market participants, and other stakeholders.”
- SEC Chair Gary Gensler

CFPB Launches Consumer Financial Protection Circulars to Promote Consistent Enforcement of Consumer Financial Protections

On May 16, the CFPB announced that it will periodically issue Consumer Financial Protection Circulars to promote consistency among enforcers and fair competition in the market by providing guidance on how the CFPB intends to enforce federal consumer financial law. These circulars are general statements of policy to advise other parties with authority on how to enforce federal consumer financial law but do not impose any legal requirements on external parties. The CFPB will release these circulars to all parties with authority to enforce federal consumer financial law as well as publicly, to increase transparency for the benefit of the public and regulated entities. The CFPB invites interested parties to provide feedback on its circulars by emailing Circulars@cfpb.gov.

Cryptocurrencies as Investment Options in 401(k) Plans

On March 10, the U.S. Department of Labor (DOL) issued a Compliance Assistance Release addressing its views on the availability of cryptocurrencies on 401(k) investment platforms. This guidance comes as more 401(k) plan service providers have announced their intention to make digital currencies available on their platforms. While the DOL has not taken a definitive position, it has expressed concern with cryptocurrencies being made available to 401(k) plan participants. The DOL urges plan fiduciaries to proceed with “extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu....”

Read the client alert for more information and for the DOL’s identified areas of concern with 401(k) participants investing in cryptocurrencies. 

Check Out Goodwin’s Latest Industry Insights

FinReg + Policy Watch Blog
Stay on top of developments affecting the financial services community.

LenderLaw Watch Blog
Stay on top of news and legal issues in the consumer finance industry.

Consumer Finance Enforcement Watch Blog
Stay on top of enforcement actions, trends and issues.

Digital Currency + Blockchain Perspectives Blog
Stay on top of digital currency industry news, regulatory developments and issues.

Nicole Griffin
Samantha M. Kirby
William McCurdy

Josh Burlingham
Nico Ramos