The Biden administration has opposed a congressional effort to undo the U.S. Securities and Exchange Commission’s rule requiring public companies to disclose cybersecurity incidents. President Joe Biden would veto the joint resolution, S.J. Res. 50, if it comes to his desk. The rule, which requires companies to report material cyber incidents within four business days, took effect in September and has already resulted in a stream of cyberattack disclosures. Despite opposition, the White House argues that greater transparency about cyber incidents will incentivize corporate executives to invest in cybersecurity and cyber risk management. The SEC’s cyber incident disclosure requirement has attracted the most opposition so far, but the effort to roll back the rule is also supported by the U.S. Chamber of Commerce, the American Bankers Association, and the Bank Policy Institute.
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