Attempted overturning of SEC cyber disclosure rule to be vetoed

The White House announced that legislative efforts seeking to repeal the Securities and Exchange Commission's rule requiring cyber incident disclosures to investors would be rejected by President Joe Biden, reports The Record, a news site by cybersecurity firm Recorded Future. Separate resolutions have been filed by Republicans in the House and Senate to reverse the rule, which they said was an overextension of the authorities of the SEC, with Rep. Andrew Garbarino, R-N.Y., noting that such notifications should be handled by the Cybersecurity and Infrastructure Security Agency instead. However, the White House emphasized the SEC rule's importance in supporting not only organizations' shareholders but also corporate cybersecurity initiatives. "The lack of transparency by public companies about cyber incidents impacting their operations and data is fueling increasing cyberattacks across all sectors and all industries. Greater transparency about cyber incidents, as required in the SEC's rule, will incentivize corporate executives to invest in cybersecurity and cyber risk management," said the White House.