Top SEC Controversies in 2022: Midyear Report

Securities Enforcement Defense attorney Scott Mascianica spoke with Law360 about the top stories involving the U.S. Securities and Exchange Commission (SEC) throughout the first half of 2022. SEC Chair Gary Gensler has put forth a number of rulemaking proposals covering topics ranging from climate-related disclosures and corporate board diversity to cybersecurity and the regulation of special purpose acquisitions companies (SPACs). Mr. Mascianica explained that the proposed rules affect more than primary stakeholders; for example, SPAC-related proposals affect underwriters, and cybersecurity-related rules affect vendors. In addition, some have criticized the short comment periods imposed under Gensler, especially given the volume of proposals. Mr. Mascianica said the shorter comment periods could prove counterproductive, leaving market participants less time to review "thousands of pages of proposed rules" and agency staff less time to sift through comments.

"The real purpose behind this process is for participants to offer thoughts and concerns," he explained. "For the commission to get the full picture, they need time to meaningfully take the input in and craft the rules appropriately."

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