Appeals Court Reverses SEC Regulation on Reporting Share Repurchases

Cino Gaperi

Appeals Court Reverses SEC Regulation on Reporting Share Repurchases

Dec 21, 2023 6:44 AM

Crypto Analysis, Crypto Market, Crypto Regulations, Financial

The U.S. Court of Appeals for the Fifth Circuit has made a ruling against the Securities and Exchange Commission (SEC) regarding a rule requiring issuers to report day-to-day share repurchase data. This decision, issued on December 19, 2023, is a setback for the SEC in its regulatory oversight.

Background of the SEC Rule

The SEC’s rule mandated issuers to disclose daily repurchase activity quarterly or semi-annually, with the aim of increasing transparency in financial markets. However, legal challenges led by the U.S. Chamber of Commerce and other business entities opposed the rule. Judge Jerry E. Smith of the Fifth Circuit Court found the SEC’s actions as “arbitrary and capricious” and in violation of the Administrative Procedure Act (APA).

Timeline of the Legal Battle

Initially, the court ordered a limited 30-day remand to rectify the rule’s deficiencies, but the SEC’s motion to extend the remand period indefinitely was denied. With the SEC unable to rectify the rule’s flaws, the Court vacated the rule, in compliance with the APA.

This ruling is a significant legal defeat for the SEC and may prompt a reevaluation of its regulatory strategies, particularly concerning transparency requirements in financial markets.

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This ruling represents a significant legal defeat for the SEC and may prompt a reevaluation of its regulatory strategies, particularly concerning transparency requirements in financial markets. It underscores the importance of rigorous procedural compliance and thorough impact analysis in regulatory rule-making.

Cino Gaperi

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Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content. Cino’s contributions serve as a valuable compass for both seasoned enthusiasts and newcomers, guiding them through the dynamic landscape of cryptocurrencies with well-researched perspectives. With a commitment to precision, he empowers informed decision-making within the ever-evolving crypto sphere.