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Congress·In Committee·S. 1877

Congress Tells SEC to Expand Electronic Delivery of Investor Disclosures, With Opt-Out for Paper

Improving Disclosure for Investors Act of 2025

10 months ago·View on Congress.gov
⏸

Stalled

No legislative action in over 90 days.

Legislative Progress

Senate
House
President
Law

Key Points

  • Congress directs the Securities and Exchange Commission to set rules so investment firms and brokers can send required investor documents electronically instead of by mail.
  • Investors must still get a paper notice at the start, can opt out anytime, and keep receiving paper copies if they prefer.
  • The plan includes a short switch-over window (up to 180 days) and then paper reminders (once a year for up to 2 more years) that you can go back to paper.
  • Firms would have to address failed electronic deliveries, and electronic documents must be readable and easy to save for later.
  • If the SEC misses the deadline to finish the rules, companies can still use the bill’s electronic-delivery standards and count that as meeting their legal duty.
Consumer ProtectionEconomyTechnologyData Privacy

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(2)
Retiree
Neutral
Small Business Owner
Neutral

Milestones

2 milestones2 actions
May 22, 2025Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

May 22, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Within 180 days after the bill becomes law

SEC proposes rules allowing required investor disclosures to be delivered electronically under the new standards

You may start seeing firms prepare to switch more documents to email/online delivery, and you may get notices explaining your choices

Within 1 year after the bill becomes law

SEC finalizes the electronic-delivery rules

Firms can rely on a clear nationwide rule set for e-delivery, including opt-out rights, delivery-failure fixes, and readability/save requirements

After the 1-year deadline passes, if SEC has not finalized rules

If SEC misses the deadline, firms can still switch to electronic delivery using the bill’s required protections

Even without final SEC rules, you could begin receiving disclosures electronically, but you still must have an opt-out option and required paper notices during the transition

Within 180 days after the bill becomes law

SEC reviews its existing rules to find places that still require “written” delivery

Over time, more kinds of required investing paperwork may become eligible for electronic delivery instead of paper-only language

Within 1 year after the bill becomes law

SEC updates other SEC rules so “written” delivery requirements can be met electronically

You’re less likely to get paper-only documents by default; the system shifts toward electronic delivery with opt-out rights

After SEC final rules, on timelines set by each organization

Self-regulatory organizations (like major securities industry rule groups) update their own rules to match

Brokerage and trading rules you experience (notices, confirmations, account statements) become more consistent across firms

When your firm transitions you to electronic delivery under the new rules

Paper-first notice and transition period for investors not already fully on e-delivery

You should get a paper notice first, then a gradual change (up to 180 days) before disclosures move mainly to electronic delivery

Each year for up to 2 years after your transition period ends

Annual paper reminder letters (for up to 2 years after the transition period) about opting out of e-delivery

If you didn’t fully switch or you’re unsure, you’ll still get a paper reminder that you can choose paper at any time

Source Information

Document Type

Congressional Bill

Official Title

Improving Disclosure for Investors Act of 2025

Bill NumberS 1877
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsor

Cosponsors

(10)
D: 6R: 4

Analysis generated by AI. Always verify with official sources.