Resolution led by Garbarino, Tillis would void SEC cybersecurity disclosure rule

U.S. Rep. Andrew Garbarino (R-NY) and U.S. Sen. Thom Tillis (R-NC) on Nov. 9 proposed a Congressional Review Act (CRA) resolution that would overturn a cyber disclosure rule issued by the Securities and Exchange Commission (SEC).

“This cybersecurity disclosure rule is a complete overreach on the part of the SEC and one that is in direct conflict with congressional intent,” Rep. Garbarino said.

The Cybersecurity and Infrastructure Security Agency (CISA), as the lead civilian cybersecurity agency, is tasked with developing and issuing regulations for cyber incident reporting as it relates to covered entities, said the congressman, noting that Congress and the Biden administration have been clear about coordinating federal incident reporting requirements. 

However, the SEC’s cybersecurity disclosures are in direct conflict with the congressionally mandated Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA), which CISA is currently implementing, according to information provided by legislative staff.

“The SEC took it upon itself to create duplicative requirements that not only further burden an understaffed cybersecurity workforce with additional and unnecessary reporting requirements, but also increase cybersecurity risk without a congressional mandate and in direct contradiction to public law that is intended to secure the homeland,” said Rep. Garbarino. “The CRA resolution will reinforce the congressional intent of CIRCIA and ensure that the SEC rule no longer poses a danger to our homeland.”

Rep. Garbarino sponsored House Joint Resolution 100 alongside three Republican original cosponsors, including U.S. Reps. Ann Wagner (R-MO) and Andy Barr (R-KY), while Sen. Tillis sponsored Senate Joint Resolution 50 with lead original cosponsor U.S. Sen. Katie Britt (R-AL).

If enacted, the resolution would state that the SEC’s rule “shall have no force or effect,” according to the text.

“As we have continuously seen, Gary Gensler’s SEC is doing their best to hurt market participants by overregulating firms into oblivion,” Sen. Tillis said. “I am proud to co-introduce the resolution of disapproval to strike down this overreaching rule that creates unrealistic timelines and unnecessary red tape that will ultimately make markets less safe overall.”

The Bank Policy Institute, the U.S. Chamber of Commerce, and the American Bankers Association endorsed the resolution.