News & Insights

Trump Administration Initiates Regulatory Freeze on Pending Rules

What Happened?

In a memorandum released by the White House on Monday, President Trump ordered all government agencies to cease all proposals or issuance of any new rules and to withdraw any unpublished rules that have been sent to the Office of the Federal Register but have yet to be published in the Federal Register. The agencies are instructed to do so until a department or agency head is appointed by President Trump, and they are able to review and approve the rules.

The memorandum goes on to suggest that the agencies “consider postponing for 60 days from the date of this memorandum the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect, for the purpose of reviewing any questions of fact, law, and policy that the rules may raise.” Additionally, during the 60-day period, the agencies should consider reopening the comment period, allowing interested parties to leave comments about any issues raised during the postponement.

The freeze only applies to new rules – regulations that are already in effect remain unchanged and must still be followed.

President Trump appointed the Director of the Office of Management and Budget to oversee the implementation of the memorandum.

What does this mean for me and my firm?

This order coincides with the SEC having two commissioner vacancies, Chair Gary Gensler and Commissioner Jaime Lizarraga. It is unlikely that any significant changes will take place before Trump appointees, like Paul Atkins, fill those vacancies and provide a majority vote of commissioners. Additionally, the new administration will have to take into account the extent that federal courts have challenged SEC authority, such as the loss of Chevron deference removing the requirement to defer to federal agency interpretation and the Fifth Circuit decision that vacated the Private Fund Adviser Rules.

Firms should continue to comply with all regulations that are already in place and continue to monitor the status of proposed rules. In Trump’s first term, the focus areas and approach to enforcement shifted toward administration goals. However, the evergreen compliance work of maintaining an effective compliance program, preparing for new rules, meeting filing deadlines, and responding to examinations and enforcement actions were as necessary then as they are now. For more on what to expect under the SEC’s incoming leadership, read our 7 Predictions for the SEC in 2025.