Gary Gensler's SEC Rules Targeted As Managed Funds Association Urges Rollbacks Under Trump-Picked Leadership

The Managed Funds Association has called on the Securities and Exchange Commission (SEC) to reform or withdraw several regulations implemented during former Chair Gary Gensler‘s tenure, signaling a potential shift in the regulatory landscape under interim Chair Mark Uyeda.

What Happened: In a letter to Uyeda, President Donald Trump‘s pick for the position, the private fund industry group outlined 10 recommendations aimed at “reducing costs and burdens on market participants and improving the efficiency of the financial markets,” reported Reuters.

The MFA’s push comes amid a broader pullback from Gensler’s regulatory approach. Private fund associations have already successfully challenged some SEC rules in court, with the industry securing several legal victories against regulations introduced in 2023.

Among key recommendations, the industry group urged the SEC to delay implementing Treasury clearing requirements until proper market infrastructure is in place. Last month, the regulator postponed by one year the rollout of new rules for some cash and repo Treasury transactions originally targeting the $28.5 trillion Treasuries market.

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Why It Matters: With litigation pending on other Gensler-era initiatives regarding short selling and securities lending transparency, the MFA is seeking reduced reporting requirements. Additionally, the group called for a framework governing digital asset securities investments.

Uyeda, who replaced Gensler following Trump’s inauguration in January, has signaled a more methodical regulatory approach. “We may need to make course corrections, but you want to be very thoughtful in how you change direction,” Uyeda said.

The interim chair has already reversed course on several Gensler policies, dropping crypto-related lawsuits, creating a cryptocurrency task force, and pausing climate disclosure rules.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.