# SEC withdrawal of proposed rules (33-11377): Withdrawal of Proposed Regulatory Actions — including the predictive data analytics conflicts proposal

Source: https://www.bankingnewsai.com/ai-regulation/documents/sec-pda-proposal-withdrawal-33-11377
Last updated: Aug 26, 2026

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.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [SEC](https://www.bankingnewsai.com/ai-regulation/sec) |
| 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| Applies to | All SEC registrants that would have been covered by the withdrawn proposals; for AI purposes, broker-dealers and investment advisers |
| Official text | https://www.federalregister.gov/documents/2025/06/17/2025-11039/withdrawal-of-proposed-regulatory-actions |

## Key points

- 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- Other withdrawn proposals included the adviser outsourcing, safeguarding (custody), and cybersecurity risk-management proposals, which also touched AI and third-party model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 changed 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.

## Use cases it governs

- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)
- [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots)

Supersedes: [SEC Predictive Data Analytics proposal (34-97990)](https://www.bankingnewsai.com/ai-regulation/documents/sec-pda-conflicts-proposal-34-97990).

## FAQ

### 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.

## Related documents

- [SEC Predictive Data Analytics proposal (34-97990)](https://www.bankingnewsai.com/ai-regulation/documents/sec-pda-conflicts-proposal-34-97990) — Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers — proposed rule (Jul 26, 2023)
- [Atkins remarks at Investor Advisory Committee (Sep 2026)](https://www.bankingnewsai.com/ai-regulation/documents/sec-atkins-iac-ai-disclosure-remarks-2026-09) — Remarks at the SEC Investor Advisory Committee Meeting on AI Technologies and the Public Markets Information Ecosystem (Sep 10, 2026)
- [Atkins remarks at FSOC AI roundtable (Mar 2026)](https://www.bankingnewsai.com/ai-regulation/documents/sec-atkins-fsoc-ai-roundtable-2026) — Remarks at Financial Stability Oversight Council Artificial Intelligence Innovation Series Roundtable on Strategy and Governance Principles (Mar 4, 2026)
- [Investor Advisory Committee AI disclosure recommendation](https://www.bankingnewsai.com/ai-regulation/documents/sec-iac-ai-disclosure-recommendation-2025) — Recommendation of the SEC Investor Advisory Committee Regarding the Disclosure of Artificial Intelligence's Impact on Operations (Dec 4, 2025)
- [Division of Examinations FY2026 Priorities](https://www.bankingnewsai.com/ai-regulation/documents/sec-exam-priorities-fy2026) — Examination Priorities: Fiscal Year 2026 — Division of Examinations (Nov 17, 2025)
- [SEC v. Saniger (Nate, Inc.)](https://www.bankingnewsai.com/ai-regulation/documents/sec-nate-saniger-ai-washing-2025) — SEC Charges Founder of Nate, Inc. with Fraud Over False Claims About the Company's Use of Artificial Intelligence (Apr 9, 2025)
- [Presto Automation AI-washing order](https://www.bankingnewsai.com/ai-regulation/documents/sec-presto-automation-ai-washing-2025) — SEC Charges Restaurant-Technology Company Presto Automation for Misleading Statements About AI Product (Jan 14, 2025)
- [Division of Examinations FY2025 Priorities](https://www.bankingnewsai.com/ai-regulation/documents/sec-exam-priorities-fy2025) — Examination Priorities: Fiscal Year 2025 — Division of Examinations (Oct 21, 2024)

Last reviewed Aug 26, 2026. Cite the official text (https://www.federalregister.gov/documents/2025/06/17/2025-11039/withdrawal-of-proposed-regulatory-actions) for the rule and this page for the summary and dates.

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