June 2025 Public Policy Update
By Erin Koeppel
Managing Director, Government Relations and Public Policy Counsel
Washington, D.C., has been alive with celebration and community this month. Over the weekend of June 6, the District hosted World Pride, drawing visitors from around the globe to take part in vibrant events around town. The following weekend, on June 14, the U.S. Army marked its 250th birthday with festivities and a parade to honor the legacy, service and sacrifice of service members throughout American history.
News from the Administration
In the midst of these events, President Trump continues his historic run of executive orders and actions on a number of different items across the board. As negotiations and court actions have continued, uncertainty surrounding trade policies and economic growth remains. However, market volatility has somewhat subsided, and major U.S. market indices have shown growth over the past month.
Earlier in June, Daniel Aronowitz, nominated to be assistant secretary of Labor for DOL’s Employee Benefits Security Administration (EBSA), saw a confirmation hearing in front of the Senate Health, Education, Labor and Pensions Committee. During the hearing, Mr. Aronowitz, who is expected to receive a full confirmation vote in the coming weeks, stated he would “end the era of regulation by litigation” and "strive to provide regulatory clarity" to Labor’s fiduciary rule "as applied to IRA rollovers." On June 13, 2025, the Department of Labor filed an unopposed motion asking the U.S. Court of Appeals for the Fifth Circuit for 60-day extension to determine whether it will proceed with its appeal of a stay of the Retirement Security Rule. On May 22, CFP Board, FPA, NAPFA and XY Planning Network submitted a joint letter to DOL Secretary Lori Chavez-DeRemer, urging her support for the rule.
Senior U.S. Securities and Exchange Commission (SEC) officials shared their observations on what the legal and business community can expect from the SEC in the near future at May’s “SEC Speaks 2025” conference in Washington, D.C. Staff anticipated rulemaking in areas related to crypto assets, retail investment and the Consolidated Audit Trail (CAT). The staff also stated that the SEC’s Division of Enforcement intends to remain a “cop on the beat,” focusing on core enforcement areas, such as market manipulation, insider trading, accounting and disclosure fraud, and breaches of fiduciary duties by investment advisers. Staff observed that enforcement matters will be less focused on exam deficiencies that lack any indication of fraud or harm to investors. Structurally, the staff noted that the Division of Enforcement’s “Crypto Assets and Cyber” unit has been replaced with a “Cyber and Emerging Technologies” unit. That group will investigate the misuse of technology to commit fraud, false statements touting emerging technologies (such as artificial intelligence) to generate investment interest, hacking, and the use of social media and the dark web to defraud retail investors.
The SEC’s Investor Advisory Committee (IAC) recently convened and finalized its recommendation that the SEC limit the use of mandatory arbitration clauses by registered investment advisers and specifically to “harmonize the regulation of registered investment advisers and brokerage firms.” The IAC also recommended that they publish educational materials explaining the arbitration process, along with questions investors should ask their advisor or broker. To view the Committee’s recommendations, please click here.
Within the past week, the SEC officially withdrew 14 Biden-era proposals, made under then SEC Chairman Gary Gensler. These rules dealt with cybersecurity risk management; environmental, social, and governance disclosures; predictive data analytics; and more. This move is not surprising, considering many expected Chairman Atkins to roll back regulations.
Reconciliation Goes to the Senate
We hope you found our special congressional report email helpful in staying in tune with what’s happening on Capitol Hill. Following the House passage of the One Big Beautiful Bill (OBBB) Act, individual Senate committees have released initial text on their respective portions of the sweeping legislation. The Senate Finance Committee’s text includes a number of provisions within their jurisdiction covering tax; health programs under the Social Security Act, such as Medicare and Medicaid; and more. The Senate committee’s version of the bill includes the Freedom to Invest in Tomorrow’s Workforce Act, also seen in the House version of the bill. This is a key win that we hope to see in the final version of OBBB. There are a few sticking points that will have to be worked out, such as the Section 199A pass-through deduction. The House version extends the deduction and increases it to 23% from 20%. The Senate version extends the deduction at the same rate, while increasing the income caps. We will continue to monitor the situation and advocate for parity for all financial professionals.
With Senate Committee text out, the Senate will follow a similar process to the House, with some individual committee holding markups, allowing lawmakers on those committees to debate and propose amendments. Of note, while the House passed the OBBB, the House Freedom Caucus shared a ten-page memo outlining additional changes it would like to see in the bill. Further, House GOP leadership made “technical” changes to the bill before formally transmitting the bill to the Senate. These changes include removing certain provisions that would not pass the “Byrd” rule, which requires the reconciliation package to consist only of measures related to tax, spending and the debt limit.
The Senate maintains its timeline of ushering in the comprehensive package by July 4.
Washington’s Attempt to Regulate Digital Assets
In the Senate, the long-awaited Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S. 1582), which would establish a regulatory framework for stablecoins (a type of cryptocurrency whose value is pegged to another asset), received a procedural vote to move forward after it was delayed during the amendment process. The Senate held a floor vote on the legislation June 17, where it passed. It will be transmitted to the House, to be deliberated.
Over in the House, House Financial Services Chair French Hill (R-AR) introduced the Digital Asset Market Clarity (CLARITY) Act (H.R. 3633), which received a markup and was approved in bipartisan fashion in the Chair’s Committee and the House Agriculture Committee last week. In short, the bill would establish a regulatory framework for digital assets in the U.S. The bill will head to the House floor, where it awaits a full House vote.
Nearby at the SEC, the Crypto Task Force, led by Commissioner Hester Peirce, continues to examine the application of the federal securities laws to the crypto asset market. The Task Force held its last scheduled Roundtable on June 9 for a session titled, “DeFi and the American Spirit.” In his opening remarks, Chairman Paul Atkins stated he has “directed [SEC] staff to consider a conditional exemptive relief framework or ‘innovation exemption’ that would expeditiously allow registrants and non-registrants to bring on-chain products and services to market.” Commissioner Mark Uyeda noted the SEC’s “commitment to continued progress and its willingness to consider the role of emerging technologies.” At the same time, Commissioner Caroline Crenshaw expressed patience and caution in formal rulemaking, noting “it’s better to do it right than fast” with “issues this complex and stakes this high.” While their individual views of crypto vary, the Commissioners agreed that these are complex issues.
In between the budget reconciliation bill and crypto asset legislation, lawmakers have found some time to focus on other business of interest to CFP® professionals, including bills considered by the House Financial Services Committee in late May.
On May 19, 2025, CFP Board submitted a letter to committee leadership expressing support for several bills aimed at protecting seniors and small businesses and concern about proposals that could reduce material disclosures to investors. CFP Board also urged Congress to modernize the definition of accredited investor in a way that balances increased market access with appropriate investor protections.
Further, the Senate Judiciary Committee held a hearing on June 17 titled “Scammers Exposed: Protecting Older Americans from Transnational Crime Networks.” In response, CFP Board submitted a letter on June 16 — just one day after World Elder Abuse Awareness Day — emphasizing its commitment to safeguarding older Americans and other vulnerable adults from financial exploitation.