Biden to Veto Attempt to Overturn SEC Cyber Incident Disclosure Rules
Security Week – Eduard Kovacs
The White House announced President Biden’s intention to veto Republican lawmakers’ attempt to overturn the Securities and Exchange Commission’s (SEC) cyber incident disclosure rules, which came into effect on December 18, 2023\) These rules mandate public companies to disclose material breaches within four business days to offer timely information to investors.
Despite concerns that early disclosure could benefit attackers, the White House argues that transparency incentivizes corporate investment in cybersecurity and fulfills companies’ fiduciary duties to inform investors about cybersecurity incidents.
The administration contends that reversing the SEC’s rulemaking would disadvantage investors and undermine investments in cybersecurity programs, impacting economic and national security.
Furthermore, the SEC clarified that the disclosed information is limited and does not include technical specifics or incident response details that could be useful to attackers.
Additionally, companies can delay disclosure in cases of substantial risk to national security or public safety.
Link: https://www.securityweek.com/biden-to-veto-attempt-to-overturn-sec-cyber-incident-disclosure-rules/