Recently, the new administration issued this executive order mandating that federal agencies identify at least 10 regulations to be repealed if that agency proposes or adopts a new regulation, per Section 3 of the order. Section 5 defines “regulation” broadly to cover rules, regulations, policy statements and guidance.
This is similar to the last time President Donald Trump was in office – except back then, he only sought a ratio of 2:1, as well as a mandate to cut 75% of all federal regulations. That 2017 executive order was challenged in court and never implemented, and it is likely that this new executive order also will be challenged by litigation.
It’s worth noting that this new executive order also requires that the total incremental cost of all new regulations – including repealed regulations – must be significantly less than zero this fiscal year.
The new executive order shouldn’t apply to the SEC since it’s an independent federal agency. But incoming SEC Chair Paul Atkins may well choose to follow the essence of it …
Authored by
Broc Romanek