Regulatory & Compliance

This week’s governance, compliance and risk-management stories from around the web —SEC chair Paul Atkins is preparing to codify an ‘innovation exemption’, a regulatory carve-out designed to allow crypto and tokenization projects to operate under lighter oversight while the SEC crafts new rules. As reported by decrypt, the exemption would grant conditional relief from certain legacy securities requirements to facilitate product launches, new trading models and decentralized finance innovations that don’t neatly align with traditional regulatory frameworks. Atkins first floated the idea publicly in mid-2025, saying that staff are ‘considering what other changes may be appropriate… including an innovation exception…

Implications for legal leaders in the industry are significant On September 22, President Donald Trump and HHS secretary Robert Kennedy Jr publicly claimed a link between prenatal use of acetaminophen (marketed as Tylenol in the US) and autism. Speaking in the Roosevelt Room at the White House, Trump warned: ‘With Tylenol, don’t take it! Don’t take it’. He added that the FDA would begin notifying doctors that the use of acetaminophen ‘can be associated’ with an increased risk of autism. Secretary Kennedy described the move as ‘the first FDA-recognized treatment pathway, informing doctors and families about potential risks, and investing…

This week’s governance, compliance and risk-management stories from around the web –Earlier this week, Texas attorney general Ken Paxton launched an investigation into Glass Lewis and ISS ‘for potentially misleading institutional investors and public companies by issuing voting recommendations that advance radical political agendas rather than sound financial principles’. Paxton also says that the investigation will determine whether allegations that the firms violated Texas consumer-protection laws, including rules on disclosing material facts, are valid. ‘The two giants routinely issue proxy voting recommendations in conflict with the best financial interests of their fiduciaries. For example, Glass Lewis and ISS instruct their…

Major shift underway in how public companies can handle shareholder disputes Recent regulatory changes and shifting investor priorities are redefining how companies engage with shareholders – and how activists wage campaigns. The 2025 proxy season has proven to be a turning point, marked by heightened caution, evolving tactics and a dramatic retreat from previously hard-earned progress in engagement. According to Elizabeth Bieber, partner and head of shareholder engagement and activism defense at Freshfields, much of this upheaval can be traced back to the SEC’s recent guidance related to Regulation 13D-G. Though technically not a rule change, the guidance had an…

Elizabeth Bieber on how guidance on Regulation 13D-G – not new law – has sent shockwaves through the capital markets In a move that could reshape the landscape of investor rights and corporate liability, the SEC voted on September 17 to allow companies going public to include mandatory shareholder arbitration clauses in their governing documents. The three to one vote, split along party lines, reversed a longstanding SEC policy that had discouraged such clauses and signalled to IPO filers that they would not be permitted. The Commission’s policy statement clarified that companies may now condition access to public markets on…

This week’s governance, compliance and risk-management stories from around the web – SEC chairman Paul Atkins has made comments threatening toban overseas companies from using accounting rules from the International Financial Reporting Standards (IFRS) should the IFRS Foundation doesn’t change its sustainability and climate requirements. Atkins was speaking to the Financial Times (paywall) when he said that the IFRS Foundation was ‘chasing political fads’ with sustainability issues, describing it as ‘a real issue, a real problem’. According to Atkins, the new sustainability principles being adopted by the IFRS ‘could undermine the integrity of IFRS and particularly its compatibility with [US…

As other states tighten regulations, Texas bets on free enterprise and streamlined governance to attract more private investment across key industries. Texas is positioning itself as a serious challenger to Delaware for corporate incorporations with two landmark corporate law reforms. Effective September 1, 2025, Senate Bills SB 29 and SB 1057 introduce sweeping changes aimed at enhancing legal predictability, reducing litigation risks, and curbing shareholder activism. These changes are set to make Texas a more attractive, management-friendly jurisdiction for companies. SB 29, effective immediately, codifies the Business Judgment Rule, offering directors and officers a presumption of good faith, informed decision-making…

This week’s governance, compliance and risk-management stories from around the web —The SEC has published its first regulatory agendaunder new chair Paul Atkins, detailing the short and long-term rules updates that the agency plans to make. The proposals span five key areas, with the first covering cryptocurrency regulations, under which the SEC plans to define clearer rules for issuance, custody, trading and open pathways for exchange listing. The second concerns deregulation, where the agency says it will streamline compliance, modernize rules and facilitate capital raising. The third area is around shareholder proposals, with the SEC saying it will amend Rule…

This week’s governance, compliance and risk-management stories from around the web – Active Ownership, the second-largest shareholder in German manufacturer Gerresheimer, has called for a full strategic review of the company following its acquisition of a 5.31 percent stake earlier this year. As reported by Reuters (paywall), the investor called for a quick conclusion to the sale of Gerresheimer’s molded glass division, to boost cash flow and reduce debt. The demands also include portfolio restructuring, administration cost savings and the establishment of a strategy committee. The investor says the moves will raise the company’s return on sales by five percentage…

Regulator seeks to strike a balance between innovation and addressing long-standing uncertainties Last month, SEC chairman Paul Atkins delivered a speech at the America First Policy Institute during which he unveiled Project Crypto, an initiative designed to position the US as the global leader in digital finance. Through it, Atkins seeks to modernize the US regulatory framework for digital assets in collaboration with various government entities, including the SEC’s Crypto Task Force and the Commodity Futures Trading Commission (CFTC). The launch of Project Crypto occurred one day after the President’s Working Group on Digital Asset Markets (PWG) released its report…