In a joint statement, SEC Commissioners Hester Peirce and Elad Roisman criticized SEC Chair Gary Gensler's recently announced Regulatory Flexibility Agenda ("Agenda") for, among other things, failing to "include any items intended to facilitate capital formation." The Commissioners further criticized the Agenda's focus on "redo[ing] recently completed rules, add[ing] new regulatory obligations, and constrain[ing] investor choice."

The Commissioners criticized the Agenda's proposal to lower the threshold for registering securities under the Securities Act, noting that the JOBS Act had raised these thresholds to bolster pre-IPO companies and startups. They also criticized proposed changes to Form D ("Notice of Exempt Offerings of Securities"), and expressed concern that additional disclosure requirements would hinder companies struggling to emerge during COVID-19 amid a harsh economic environment.

In addition, the Commissioners criticized the Agenda for abandoning an exemption to Securities Exchange Act Rule 15c2-11 ("Initiation or Resumption of Quotations without Specific Information") and an amendment to Investment Company Act Rule 17a-7 ("Exemption of Certain Purchase or Sale Transactions between an Investment Company and Certain Affiliated Persons Thereof"), which they argued were crucial to maintaining market efficiency and order. Finally, the Commissioners questioned the Agenda's silence on both digital asset regulation and additional data security for the Consolidated Audit Trail.

"Chair Gensler's former tenure at the CFTC was notable, among other things, for party-line votes. His tenure at the SEC is off to a start that is the same, but more so. Baseball fans may remember a famous quote that "There is nothing quite so limited as being a limited partner of George Steinbrenner's." Perhaps Commissioners Peirce and Roisman can suggest at least one thing that is equally limited," said Steven Loftchie.