2024 Regulatory Updates: Top News and Updates
In January, the U.S. Securities and Exchange Commission (SEC) made a significant move by approving bitcoin exchange-traded funds (ETFs). This decision allows investors to easily buy and sell bitcoin, similar to stocks and other financial instruments, without incurring large fees. Previously, investors had to trade bitcoin on crypto exchanges, but now, with the SEC’s approval of 11 applications filed by asset managers, the process has been simplified. Despite this approval, SEC Chair Gary Gensler made it clear that the SEC does not endorse bitcoin or crypto trading platforms.
Moving on to environmental news, in January, the U.S. Environmental Protection Agency (EPA) finalized a rule restricting the manufacturing and processing of 329 per- and poly-fluoroalkyl substances (PFAS). These chemicals are known to have adverse health and environmental effects, such as an increased risk of certain cancers and water contamination. Covered companies intending to use PFAS for new purposes must now notify the EPA, which will then conduct a detailed review to evaluate potential risks and implement restrictions.
In February, the U.S. Patent and Trademark Office issued guidance on awarding patents for artificial intelligence-assisted inventions. The guidance emphasized the need for a human to have made a significant contribution to the invention for a patent to be granted. The EPA also made strides by strengthening limits on fine industrial particle emissions, aiming to reduce soot levels, which it defines as one of the most dangerous forms of air pollution. The agency plans to monitor air quality around industrial sites with a focus on health risks to nearby populations, particularly in disadvantaged communities.
In March, the SEC approved a final rule requiring certain public companies to report their greenhouse gas emissions and climate risks. Large companies are now mandated to disclose direct emissions deemed material to their financial standings, with exemptions granted to smaller businesses. SEC Chair Gary Gensler stated that the rule aims to enhance consistency and comparability in disclosures to meet investor demand for climate-related information.
The U.S. Supreme Court made headlines in March by reversing the Colorado Supreme Court’s ruling that former President Donald J. Trump was ineligible to run for office under Section 3 of the 14th Amendment. The Court’s focus was on who has the authority to enforce Section 3 against those seeking federal office, ruling that states do not have that power.
In April, President Joe Biden signed a bill into law requiring the Chinese company that owns TikTok to divest its ownership within nine months. Failure to comply would result in a ban of the social media app from U.S. app stores. The Federal Trade Commission (FTC) also issued a final rule banning noncompete clauses in employment contracts, with exceptions for senior executives earning over $151,164 annually.
May brought a significant ruling from the U.S. Supreme Court, which found that the Consumer Financial Protection Bureau’s funding mechanism does not violate the U.S. Constitution. The Court overturned a previous decision that deemed the funding mechanism unconstitutional. Additionally, the DEA proposed reclassifying marijuana from Schedule I to Schedule III under the Controlled Substances Act.
These regulatory news items from the past year demonstrate the ongoing efforts to address important issues related to finance, the environment, intellectual property, employment practices, and more. Keeping up with regulatory changes is crucial for both businesses and individuals to navigate the evolving regulatory landscape.
