On June 12, 2025 the SEC issued Release Nos. 33-11377, 34-103247, IA-6885 and IC-35635 formally withdrawing 14 notices of proposed rulemaking issued between March 2022 and November 2023, including the July 2023 predictive data analytics conflicts proposal (34-97990). The notice states the Commission 'does not intend to issue final rules with respect to these proposals' and that any future action in these areas would begin with a new proposed rule. It was published in the Federal Register on June 17, 2025.
| Document | SEC withdrawal of proposed rules (33-11377) — Withdrawal of Proposed Regulatory Actions — including the predictive data analytics conflicts proposal |
| Issued by | U.S. Securities and Exchange Commission |
| Type | Regulation |
| Status | Final |
| Published | Jun 12, 2025 |
| Applies to | All SEC registrants that would have been covered by the withdrawn proposals; for AI purposes, broker-dealers and investment advisers |
| Supersedes | SEC Predictive Data Analytics proposal (34-97990) |
| Official source | federalregister.gov ↗ |
| Use cases | AI governance (general) · Customer-facing chatbots |
What are the key points of SEC withdrawal of proposed rules (33-11377)?
- Withdraws the predictive data analytics conflicts proposal for broker-dealers and investment advisers outright rather than deferring it.
- Other withdrawn proposals included the adviser outsourcing, safeguarding (custody), and cybersecurity risk-management proposals, which also touched AI and third-party model use.
- The Commission committed that any renewed effort would go through a fresh notice-and-comment process.
- Leaves AI conflicts governed by Regulation Best Interest, Advisers Act Section 206, and the Marketing Rule.
What did SEC withdrawal of proposed rules (33-11377) change for banks?
For bank broker-dealer and adviser arms, the withdrawal ended the compliance planning for a conflicts-elimination regime specific to algorithms. It did not lower the bar on existing duties: SEC examiners and enforcement continue to treat conflicted or misrepresented AI use as a Reg BI, fiduciary, or antifraud issue.
Which SEC AI rule was withdrawn in June 2025?
The July 2023 proposal on Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers (Release 34-97990, File No. S7-12-23).
Could the SEC revive the predictive data analytics rule?
Only through a new proposed rule. The withdrawal notice says the Commission does not intend to finalize the 2023 proposal.
| Date | Document | Status |
|---|---|---|
| Jul 26, 2023 | SEC Predictive Data Analytics proposal (34-97990) — Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers — proposed rule | Withdrawn |
| Mar 4, 2026 | Atkins remarks at FSOC AI roundtable (Mar 2026) — Remarks at Financial Stability Oversight Council Artificial Intelligence Innovation Series Roundtable on Strategy and Governance Principles | Final |
| Dec 4, 2025 | Investor Advisory Committee AI disclosure recommendation — Recommendation of the SEC Investor Advisory Committee Regarding the Disclosure of Artificial Intelligence's Impact on Operations | Final |
| Nov 17, 2025 | Division of Examinations FY2026 Priorities — Examination Priorities: Fiscal Year 2026 — Division of Examinations | In force |
| Apr 9, 2025 | SEC v. Saniger (Nate, Inc.) — SEC Charges Founder of Nate, Inc. with Fraud Over False Claims About the Company's Use of Artificial Intelligence | Final |
| Jan 14, 2025 | Presto Automation AI-washing order — SEC Charges Restaurant-Technology Company Presto Automation for Misleading Statements About AI Product | Final |
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