‘WAKE UP': SEC chairman warns Wall Street is funding America's demise

Core Viewpoint - The White House is considering new regulations that could significantly alter shareholder voting power, particularly targeting proxy advisers and the voting practices of major index fund managers [1][4]. Group 1: Proxy Advisers and Corporate Governance - The SEC is focusing on the influence of proxy advisers, which have been criticized for their potential conflicts of interest and the politicization of shareholder proposals [4][5]. - The SEC plans to review the role of institutional investors like BlackRock and Vanguard, emphasizing that their influence should be limited as they are primarily passive investors [7][8]. - The SEC aims to propose clarifications and rules regarding the governance of shareholder proposals and the role of proxy advisers in corporate decision-making [4][8]. Group 2: IPOs and Market Activity - Following a 43-day government shutdown, the SEC is prioritizing the review of approximately 500 registration filings for IPOs and corporate financings that were delayed [10][12]. - The SEC is working to return to normal activity levels in reviewing IPOs and hopes to clear the backlog of filings as quickly as possible [14][13]. Group 3: Crypto Regulation - The SEC is developing a new framework for crypto regulation, aiming to clarify which digital assets are classified as securities [14][17]. - The chairman highlighted the need to distinguish between different types of digital assets, such as digital commodities and tokenized securities, to provide clearer guidelines for the industry [17][18]. Group 4: Foreign Investment and National Security - There is growing scrutiny over American investments in Chinese companies, particularly those linked to national security risks, as highlighted by recent congressional inquiries [20][21]. - The SEC is examining the practices of foreign private issuers and their compliance with U.S. regulations, especially concerning companies incorporated in jurisdictions like the Cayman Islands but operating primarily in China [25][26]. - The SEC is taking action against suspicious trading activities in penny stocks to protect investors from potential harm [26][30].