The Securities and Exchange Commission's accredited investor rule, which restricts access to certain private investments to individuals meeting specific wealth or income thresholds, is being challenged in court for its method of determining financial sophistication. The rule currently requires investors to have a net worth above $1 million or an annual income exceeding $200,000 -- or $300,000 with a spouse -- for the past two years. Separately, the IAA has called for the approval of legislation that would expand how "accredited investor" is defined and maintain the appropriate investor protections.

The IAA urges investment advisers to contact their senators in support of the Small Entity Update Act. This bipartisan, House-passed bill would require the Securities and Exchange Commission to modernize its outdated definition of "small entity" under the Regulatory Flexibility Act -- ensuring it captures a meaningful number of small businesses. Once updated, the SEC would be required to assess the impact of all proposed regulations on small entities and consider less burdensome alternatives. This is a critical step toward reducing unnecessary regulatory burdens on smaller firms.

Managing regulatory changes, Securities and Exchange Commission examination expectations, and your compliance program -- it's a lot for legal and compliance personnel to keep in mind. Join the IAA and expert practitioners this fall at our Compliance Workshops to keep up-to-date and prepared, coming to a city (or computer) near you. The Chicago (Oct. 1) and New York (Oct. 7) events are just under a month away -- register now if you're planning to attend in those cities!

The National Society of Compliance Professionals has formally requested that the Securities and Exchange Commission establish a compliance committee with up to 15 compliance professionals as members. The IAA is among the groups backing the recommendation, said NSCP Executive Director and CEO Lisa Crossley, adding that such a committee is needed due to the growing complexity of the regulatory environment.

Securities and Exchange Commission Chairman Paul Atkins has signaled a more collaborative regulatory approach, pledging businesses will get notice of technical violations before facing penalties. The move marks a sharp break from former Chair Gary Gensler's aggressive enforcement era under President Joe Biden, with Atkins focusing enforcement on fraud while advancing the White House's crypto-friendly agenda. Atkins also outlined plans to craft rules for tokenized securities and smart contracts.

Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., said bipartisan negotiations on a US crypto market structure bill remain on track. They aim to finalize legislation clarifying oversight of spot and derivatives markets before year-end. Progress comes despite partisan gridlock and shifting regulatory priorities.

The IRS and Treasury Department issued final rules on Roth catch-up contributions under a provision of the SECURE 2.0 retirement package. Retirement plans are expected to follow the rules on a "reasonable, good faith" basis in 2026.

The Federal Reserve is widely expected to trim interest rates by a quarter point this week as slowing job growth cements the case for easing. Policymakers remain divided on whether to stop at one or two tactical cuts or pursue a longer cycle of stimulus, with potential dissents likely. New projections and Chair Jerome Powell's tone will be closely watched for clues on the Fed's path beyond this initial move.