The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission on Monday jointly proposed revisions to Biden-era rules on enhanced disclosures by the $26 trillion private funds industry, the agencies announced.

The SEC said the changes, if adopted, would reduce the burden on private funds and investment advisers while still requiring the collection of “necessary and appropriate” information.

Despite Republican objections under former President Joe Biden, in 2024 the SEC and CFTC jointly required hedge funds, private equity and others to report investments, exposures to counterparties and currencies, as well as countries and industries, performance of investments by strategy and portfolio liquidity, among other things. They said that these rules are necessary to detect risk in the financial system.

Republican SEC and CFTC members said at the time that the rules were excessive and could put sensitive confidential data at risk. There are currently no Democrats appointed to any of the commissions. And, since taking control last year, the Trump administration has repeatedly pushed back the effective date of the rules to give officials time to adopt the changes.

The changes proposed Monday would reduce the number of firms required to make such disclosures by raising the qualifying threshold from $150 million to $1 billion for small advisers and from $1.5 billion to $10 billion for “large” hedge fund advisers.

According to the SEC, these changes will still capture 90% of assets under management.

The organization Better Markets, which has called for tighter regulation of Wall Street, pointed to the current turmoil in the private funds industry, saying it creates clear strains on the private equity and private credit markets even as officials consider allowing retirement savings accounts to hold private funds.

“This is precisely the wrong time to increase the uncertainty that has permeated the private funds industry,” Benjamin Shiffrin, the institute’s head of securities policy, said in a statement.

The Alternative Investment Management Association, a lobby group representing the private funds sector, said the proposal struck the “right balance” between managing risk and reducing the burden of regulation.

The proposal will be subject to a 60-day public comment period before the agencies make any decisions on the final version.