Sec Speeches Cryptocurrency SEC.gov | Statement on Regulation E-Delivery

Today, the Commission took an important step toward allowing the financial services industry to harness technology for the benefit of everyday American investors. By proposing to permit electronic delivery (e-delivery) to become the default method for issuers, market intermediaries, and others to communicate with investors, we are taking another stride toward a regulatory framework suitable for the modern era, a key pillar of my agenda. 

Today’s proposal was jointly developed by the Divisions of Investment Management, Corporation Finance, and Trading and Markets, with support, as always, from the Division of Economic and Risk Analysis. I applaud our staff for working collaboratively to develop a cohesive and comprehensive proposal that would modernize the rulebook for all the Commission’s regulated entities.

The world has changed dramatically since many of our rules were first adopted. But, all too often, our regulatory framework has remained static. Default paper delivery results in a constant source of unnecessary expenses that are paid for by American investors and reduce their investment returns. In an age of artificial intelligence and blockchain technology, a default to paper delivery should be a relic, not a standard. 

If adopted, Regulation E-Delivery would establish requirements and conditions under which essential information could be delivered electronically to investors and others without first obtaining their affirmative consent to do so. Currently, much of the required regulatory information is delivered in paper form unless the recipient affirmatively elects otherwise. The modernized approach, if adopted, generally would supersede the Commission’s decades-old, guidance-based e-delivery framework while preserving investors’ ability to receive delivery in paper on request. Importantly, it would substantially reduce paper, printing, and postage costs for issuers, intermediaries, and, ultimately, investors.

Under my chairmanship, we will not remain tethered to the tools or the temperament of a bygone era. Regulation E-Delivery is not merely a proposed administrative adjustment; it represents a meaningful advancement toward aligning our rules with the needs of today’s markets.

Thank you to the following members of the Commission staff for their work on the proposal:

In the Division of Investment Management: Brian Daly, Sarah ten Siethoff, Robert Holowka, Brian Johnson, Amanda Hollander Wagner, Sam Thomas, Ted Uliassi, Andrew Deglin, and Pamela Ellis.

In the Division of Corporation Finance: James Moloney, Ted Yu, Tiffany Posil, Tina Chalk, Laura McKenzie, Jonathan Ingram, Heather Maples, Kasey Levit, Mark Saltzburg, John Fieldsend, Kayla Roberts, Jeb Byrne, and Michael Coco.

In the Division of Trading and Markets: Jamie Selway, Emily Westerberg Russell, John Fahey, Lourdes Gonzalez, Meredith MacVicar, Kevin Schopp, Kelly Shoop, Emily Hellman, Leah Levi, Abraham Jacob, and Timothy Fox. 

In the Division of Economic and Risk Analysis: Joshua White, Oliver Richard, Lauren Moore, Charles Woodworth, Cindy Alexander, Samantha Croffie, Wei Liu, Ralph Bien-Amie’, Jeorge Young, Alex Schiller, and Rooholah Hadadi.

In the Office of the General Counsel: Elise Bruntel, Donna Chambers, Dorothy McCuaig, Natalie Shioji, Robert Bagnall, Sean Bennett, Johanna Losert, and Rebecca Orban.