Business Lobby Struggles to Thwart SEC Cybersecurity Disclosure Rules

The Justice Department is planning to issue guidance by December on how firms can get exemptions from the new SEC regulations, according to an agency official, who asked not to be identified discussing internal deliberations. Companies will only rarely be able to delay making an incident public due to national security and public safety concerns, the person said.

The Wall Street regulator, however, said businesses could delay that by as long as four months if the US attorney general determines that disclosure would pose risks to public safety or national security. That process has come under fire from the Chamber. In response to a question about the Chamber’s criticism, a Justice Department spokesperson referred to the Biden administration’s March national cybersecurity strategy, which says the department has the lead government role for cyber incident threat response efforts. The SEC declined to comment on the letter and other criticism of the rule.

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