Us Congress House Bill HJR100

Us Congress 2023-2024 Regular Session

• Introduced: 11/9/23
• Refer: 11/9/23
• Report Pass: 5/16/24

Caption

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission relating to "Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure".

Impact

The passage of HJR100 would nullify the SEC's rules and revert the approach to cybersecurity risk management and disclosure to a less stringent framework. This may potentially reduce the regulatory burden on businesses, particularly smaller entities, that might struggle with the implications of more rigorous cybersecurity compliance. However, it raises concerns about investor protection, as the eliminated rules aimed to enhance transparency and accountability on cybersecurity threats faced by companies, which have become increasingly important in the digital economy.

Summary

HJR100 is a joint resolution aiming to disapprove a rule proposed by the Securities and Exchange Commission (SEC) concerning Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure. This resolution is grounded in Chapter 8 of Title 5 of the U.S. Code, which allows Congress to reject certain rules made by federal agencies. Specifically, HJR100 focuses on the SEC's regulations that would have required public companies to enhance their cybersecurity practices and report incidents more rigorously to ensure investor protection and market integrity.

Sentiment

The overall sentiment surrounding HJR100 is polarized. Proponents argue that disallowing the SEC's rules will benefit businesses by preventing overregulation and allowing them to focus resources on growth rather than compliance. Conversely, critics express concern that such a move undermines necessary protections for investors and could expose the market to increased risks associated with cybersecurity breaches. The debate underscores a fundamental tension between the desire for regulatory relief for businesses and the imperative of safeguarding investor interests.

Contention

Notable points of contention include the balance between regulatory oversight and business operational freedom. Supporters of HJR100 contend that the SEC's proposed rules were excessively burdensome and could stifle innovation. Detractors, on the other hand, argue that the resolution fails to address the critical need for strong cybersecurity measures in an era where cyber threats are rampant. The discussion reflects ongoing tensions in regulatory policy, particularly in the financial sector, where the implications of cybersecurity governance resonate broadly across various stakeholders.