February 4, 2024 at 10:42AM
President Biden will veto Republican lawmakers’ attempt to overturn the Securities and Exchange Commission’s recently implemented cyber incident disclosure rules. These rules require public companies to disclose material breaches within four business days. The White House argues that the rules promote transparency and incentivize companies to invest in cybersecurity, benefitting investors and national security.
Key Takeaways from Meeting Notes:
– The White House announced President Biden’s intent to veto a resolution from Republican lawmakers aimed at overturning the Securities and Exchange Commission’s (SEC) cyber incident disclosure rules.
– The new rules came into effect on December 18, 2023, and dictate that public companies must disclose any material breach within four business days of its determination.
– The objective of these rules is to offer investors timely and reliable information regarding potentially costly cybersecurity incidents.
– Despite this, criticism has arisen arguing that disclosing such information may be advantageous to attackers.
– Republican lawmakers have expressed concerns that premature or inaccurate disclosure could harm investors and conflict with existing reporting requirements.
– The administration stresses that the SEC’s rules will prompt corporate investment in cybersecurity and cyber risk management, while also fulfilling publicly-traded companies’ fiduciary duty to inform investors of material cybersecurity incidents.
– The White House warns that reversing the SEC’s rulemaking could disadvantage investors and lead to underestimating cybersecurity investments, to the detriment of economic and national security.
– The SEC clarified that disclosed information would be limited, excluding technical or specific details about incident response, systems, or potential vulnerabilities. Additionally, companies can delay disclosure if there is a substantial risk to national security or public safety.
These takeaways can be useful for further analysis and communication regarding the impact and implications of the SEC’s cyber incident disclosure rules.