Biden warns of veto if GOP tries to overturn SEC cyber disclosure rule
President Biden Threatens Veto on Senate Resolution to Repeal Cybersecurity Rule
President Joe Biden is taking a firm stance against a Senate resolution that aims to overturn a crucial cybersecurity rule for public companies. Introduced by Sen. Tom Tillis, the resolution seeks to rescind the Securities and Exchange Commission (SEC) rule, which requires companies to disclose their cybersecurity practices and incidents. However, the White House has announced Biden’s intention to veto the resolution, arguing that the rule promotes transparency, informs investors, and establishes consistent cybersecurity standards.
The Urgent Need for Transparency
The White House Office of Management and Budget highlights the alarming rise of ransomware attacks, which have increased by 45% compared to the previous year. The lack of transparency from public companies regarding cyber incidents is fueling these attacks across all sectors and industries. The SEC’s rule, by mandating greater transparency, aims to encourage corporate executives to invest in cybersecurity and effectively manage cyber risks.
A Debate Over Bureaucracy and Investor Protection
However, critics, including Senator Tillis, argue that the SEC rule adds unnecessary bureaucracy without directly addressing cybersecurity concerns. The White House counters this by emphasizing that publicly traded companies already have a fiduciary duty to disclose significant cyber incidents that could impact their operations, brands, and share prices. Reversing the SEC’s rule would not only disadvantage investors but also undermine investments in cybersecurity programs, posing risks to our economic and national security.
The administration firmly believes that the SEC’s disclosure requirements are essential for protecting investors and incentivizing cybersecurity investments.
The Senate is set to consider the resolution on Wednesday.
What is the Senate resolution seeking to repeal with regards to cybersecurity rule for public companies?
President Joe Biden has expressed his opposition to a Senate resolution seeking to repeal a crucial cybersecurity rule for public companies. The resolution, introduced by Sen. Tom Tillis, aims to rescind the Securities and Exchange Commission (SEC) rule that requires companies to disclose their cybersecurity practices and incidents. However, the White House has announced President Biden’s intention to veto the resolution, arguing that the rule promotes transparency, informs investors, and establishes consistent cybersecurity standards.
The urgent need for transparency in cybersecurity practices has been emphasized by the White House Office of Management and Budget. They point to the alarming rise in ransomware attacks, which have increased by 45% compared to the previous year. The lack of transparency from public companies regarding cyber incidents has contributed to the proliferation of these attacks across all sectors and industries. The SEC’s rule, by mandating greater transparency, aims to encourage corporate executives to invest in cybersecurity and effectively manage cyber risks.
Critics of the SEC rule, including Senator Tillis, argue that it adds unnecessary bureaucracy without directly addressing cybersecurity concerns. The White House counters this argument by emphasizing that publicly traded companies already have a fiduciary duty to disclose significant cyber incidents that could impact their operations, brands, and share prices. Reversing the SEC’s rule would not only disadvantage investors, but also undermine investments in cybersecurity programs, posing risks to our economic and national security.
The administration firmly believes that the SEC’s disclosure requirements are essential for protecting investors and incentivizing cybersecurity investments. Their veto threat underscores their commitment to maintaining transparent and accountable cybersecurity practices in public companies.
The Senate is set to consider the resolution on Wednesday, and the outcome of this debate will have significant implications for cybersecurity practices and investor protection in the future. President Biden’s determination to veto the resolution sends a clear message that cybersecurity and transparency are top priorities for his administration.
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