SEC Proxy Rollback, ISS Probe & Tokenization

The October 2026 edition of The ICR D.C. Insider examines a busy month in Washington. The SEC has proposed returning authority over shareholder resolutions to the states, approved its first exemption for tokenized stocks and moved to modernize transfer agent rules for the first time in decades. It is also in a subpoena dispute with proxy advisor ISS over its voting recommendations. Elsewhere, the U.S. and China have agreed to reduce duties on $60 billion in goods. Below, we share our insights and analysis on the developments that could have an immediate and long-term impact on your business.

Tariffs & Trade

• U.S.-Canadian Tariff Conflict Escalates – The U.S. and China have agreed to cut tariffs on $60 billion worth of goods, from U.S. coal to Chinese toys. The announcement falls under the “30-for-30” framework, which covers roughly $30 billion of U.S. exports to China and $30 billion of Chinese exports to the U.S. The list of 1,619 U.S. goods entering China include agricultural commodities, hair and personal care products, timber, and medical equipment. For Chinese goods exported to the U.S., 77 categories were covered, including fireworks, tableware, toys like dolls and puzzles, glass and wooden Christmas ornaments, and soccer balls. Tariff rates on more than 90% of the products would be subject to most-favored-nation levels, the Chinese commerce ministry said, meaning that country-specific tariffs will effectively be eliminated. 

SEC

• SEC Moves to Roll Back Shareholder Proxy Proposal Rules – The Securities and Exchange Commission (SEC) proposed to end its oversight of corporate shareholder votes, which would return regulatory authority over shareholder resolutions to the states where companies are incorporated. Chairman Paul Atkins said the SEC lacks the statutory authority to oversee shareholder voting and ⁠that the area is best run by states. “As we experience an exciting period of increased competition among ​states ​for corporate domicile, there is no better ​time for the Commission to recognize ‌the limits of its authority, relative to state law, for regulating shareholder proposals.” A related proposal would update rules that were designed for a more paper-based proxy system and reduce duplicative disclosure and timing requirements with four key changes: 

• Private Asset Managers Alerted to be Rigorous in Reporting Fair Value – The SEC issued a critical reminder for private asset managers that urged fund managers, particularly those of private credit funds, to use greater rigor when tracking and sharing the fair value of their holdings with investors. 

• Two Commissioners Left – With the departure of SEC Commissioner Hester Peirce, only two commissioners remain – both of whom are Republican. There are no pending nominations for new commissioners.  

China

• Bipartisan Group of Lawmakers Request Update on Anti-Forced Labor Policy – A bipartisan group of lawmakers want to know how the Trump administration is implementing the Uyghur Forced Labor Prevention Act (UFLPA), an anti-forced labor law that targets China. Specifically, the group requested a briefing from the Department of Homeland Security (DHS). In a letter to Homeland Security Secretary Markwayne Mullin, Democratic and Republican leaders from three congressional committees pressed the department to explain how it is  enforcing the UFLPA and other U.S. trade laws. They want to know whether those measures are keeping out goods tied to the persecution of Uyghurs and other Turkic Muslim minorities.