SEC Seeks to Repeal Anti-Corruption Rules for Investment Advisers

SEC Chair Paul Atkins defended the proposal by claiming the 2010-era rules suppress political speech. However, industry watchdogs like Better Markets contend the regulation was specifically designed to combat the influence of campaign contributions on the awarding of government assets. Benjamin Schiffrin, director of securities policy at Better Markets, characterized the agency's logic as a promotion of corruption, stating the rule exists to ensure advisers are chosen for their performance rather than their political connections.

Financial giants have lobbied extensively for this change. Disclosures indicate that BlackRock Funds Services Group, a subsidiary of the world’s largest asset manager, spent over $1.5 million in 2025 lobbying the SEC, the White House, and Congress on matters including these specific regulations. Sen. Elizabeth Warren (D-Mass.) condemned the proposal, labeling it a systemic effort to rig markets in favor of wealthy donors at the expense of working people.

Under the proposed changes, the SEC would abandon the current two-year ban on providing paid services to government clients following a political contribution. The agency’s plan will be subject to a 60-day public comment period once published in the Federal Register. Recent enforcement history highlights the potential impact of the rollback; the Biden administration had previously brought charges against firms like Obra Capital Management for violating these provisions in 2023 and 2024.