The Securities and Exchange Commission proposed on August 14, 2026 a major overhaul of its 2010 pay-to-play rule, which barred investment advisers who made political contributions from managing public pension funds for two years. SEC Chairman Paul Atkins described the existing framework as a « trap for the unwary ». The initiative aligns with the current administration’s deregulatory posture, which aims to reduce regulatory friction for financial firms. Democratic lawmakers oppose the change, viewing the pay-to-play rule as an essential anti-corruption measure protecting public pension fund beneficiaries. The rule’s strict liability framework, which penalizes even inadvertent violations regardless of intent, has been a persistent source of industry frustration since 2010.
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