The Investor Advisory Committee (the “Committee”) of the Securities and Exchange Commission (the “SEC”) will hold a virtual public meeting on December 4, 2025, to discuss corporate governance regulatory reforms and the emergence of tokenization of equity securities. In addition, the Committee will discuss a potential recommendation to the SEC relating to disclosure of the impact of artificial intelligence (“AI”) on issuer operations.
During the Committee’s first panel, Regulatory Changes in Corporate Governance, panelists will explore the evolving corporate governance landscape in light of recent SEC changes, including amendments to the shareholder proposal process (Rule 14a-8), the use of mandatory arbitration clauses, investor-corporate engagement, and modifications to the proxy voting system. See our prior blog posts on these topics, including our posts on Across the Board on SEC Staff reviews of shareholder proposals and reforms to Rule 14a-8, and our alert on the upcoming proxy season.
As interest in tokenization increases, the Committee’s second panel, Tokenization of Equities: How Issuance, Trading, and Settlement Would Work with Existing Regulation, will explore potential ways in which tokenization can improve how public equities are issued, traded, and settled, while addressing how existing investor protections and securities laws apply to the process. The panel will focus its discussion on the issuance and trading of natively issued securities and wrappers, the applicability of Regulation NMS to tokenized equities, the interoperability of tokens issued across different blockchains, and other key market structure issues, including settlement and short selling.
The meeting will conclude with a discussion of the Committee’s draft Recommendation Regarding the Disclosure of AI’s Impact on Operations. The draft recommends that the SEC require issuers to:
- adopt a definition of the term “Artificial Intelligence,”
- disclose board oversight mechanisms, if any, for overseeing deployment of AI at the company, and
- report separately on how issuers are deploying AI and, if material, the effects of AI deployment on
- internal business operations, and
- consumer facing matters.
The meeting will be webcast on the SEC website at 10:00 a.m. ET on December 4. See the Committee’s full agenda.