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SEC Proposes Rescission of 'Pay-to-Play' Rule for Investment Advisers

Steady: 0 in the last 7 days Updated sep 26

The latest in this situation

  1. Hester Peirce's efforts to seek and influence SEC rules have been observed across various administrations, including Gensler's and Trump's.
  2. SEC highlights potential contribution restrictions from other regulatory bodies.
  3. New rules from the SEC have eased regulatory uncertainty in the crypto sector.
  4. Experts, including Hester Peirce and Paul S. Atkins, weighed in on the SEC's rule-making process, supporting rule elimination and criticizing regulatory overreach.

How it started

9 reports, 6 independent, last reported Oct 12. The briefing below covers this first event.

AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Well supportedReported by 6 independent outlets

The Securities and Exchange Commission proposed on September 3, 2026, to rescind Rule 206(4)-5 under the Investment Advisers Act of 1940. This rule, known as the 'pay-to-play' rule, prohibits investment advisers from providing compensation services to a government client for two years after making a political contribution to certain elected officials or candidates. The SEC must complete a 60-day public comment process before deciding whether to adopt a final rescission.

From mondaq.com, bondbuyer.com

Why it matters

Some supportBrind's analysis of the reports

The proposal responds to concerns that the rule is overly prescriptive and difficult to administer. While the SEC considers the proposal, the rule remains in force unless a final rescission is adopted. The Commission has not set a compliance date or transition period for any potential changes.

From mondaq.com

Who's involved

How it developed

Newest first. Tap a step to see who reported it.
  1. SEC highlights potential contribution restrictions from other regulatory bodies.1 source
  2. New rules from the SEC have eased regulatory uncertainty in the crypto sector.Sub-event
  3. Experts, including Hester Peirce and Paul S. Atkins, weighed in on the SEC's rule-making process, supporting rule elimination and criticizing regulatory overreach.Sub-event
  4. SEC rules proposal modeled on MSRB Rule G-37, with commentary from Hester Peirce.1 source
  5. Revised custody rules clarify how Bitcoin is held, as the SEC rule revision addresses prior opposition from the Small Business Administration.Sub-event
  6. The SEC granted exemptions allowing fund companies to add ETF share classes to their offerings.Sub-event
  7. The SEC contemplated a new rule addressing the use of AI and conflicts of interest.Sub-event
  8. Cancellation of meeting regarding new crypto rules.1 source
Show 3 earlier steps
  1. SEC proposes new rules under federal securities laws.1 source
  2. SEC proposed an overhaul of Regulation E-Delivery.1 source
  3. SEC is considering rules to increase safe harbor availability and regulate crypto asset offerings.1 source

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Coverage

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