**Washington**: Businesses in the US are bracing for significant shifts in corporate governance and regulatory frameworks as a new presidential administration takes charge. These changes, especially in M&A and ESG regulations, may reshape operational strategies and influence global trade dynamics for corporations by 2025.
In 2025, corporate governance and operations in the United States are poised to undergo significant changes as a new presidential administration implements legal and regulatory shifts at both the federal and state levels. Notably, the evolving landscape is expected to create a framework of uncertainty and opportunity for businesses navigating this complex environment.
Experts Louis Lehot and Patrick Daugherty, partners at Foley & Lardner LLP, highlight that with the transition to a new administration, corporate boardrooms are required to critically evaluate their strategies relating to domicile, compliance with Securities and Exchange Commission (SEC) mandates, and emerging legal frameworks. The SEC is anticipated to revise its disclosure requirements, particularly in areas related to environmental, social, and governance (ESG) regulations, which have become increasingly contentious.
A major area of focus involves mergers and acquisitions (M&A). Despite expectations that the new leadership at the Federal Trade Commission (FTC) would lead to relaxed guidelines for M&A activity, the agency has retained the pre-merger framework established by the previous administration, which has tempered the anticipated surge in corporate consolidations. Concurrently, the Department of Justice (DOJ) continues to pursue vigorous enforcement of antitrust laws, especially in ongoing investigations of major tech firms such as Google and Microsoft.
The long-standing dominance of Delaware as the preferred state for corporate incorporation is under scrutiny, as alternative states such as Nevada, Texas, and Wyoming actively promote more business-friendly environments through lower fees and favourable tax regimes. Nevada Secretary of State Francisco Aguilar noted that major corporations are migrating from Delaware due to “high fees and legal risks,” adding that Nevada’s approach incentivises investment through lower filing costs.
Concurrently, Texas legislators are promoting bills aimed at closing the legislative gaps with Delaware to attract businesses. This shift reflects a broader trend where states resistant to ESG regulations are becoming more appealing to corporations re-evaluating their operational locations.
Furthermore, the SEC is preparing to adopt new regulatory frameworks that could foster the growth of the digital asset sector. Former SEC Commissioner Paul Atkins is expected to prioritise regulations that facilitate capital formation while also taking a softer stance on ESG disclosures. Meanwhile, existing corporate governance practices concerning DEI initiatives are also experiencing shifts as companies seek more practical implementations of their commitments.
The regulatory landscape isn’t isolated from global trade dynamics, where Randall Castillo Ortega, an expert in global trade and logistics, outlines the profound impact of evolving global trade policies on businesses. The regulatory framework is affected by new trade agreements, tariff adjustments, and stricter customs compliance measures as governments enforce higher standards for supply chain security and transparency.
Recent developments include the renegotiation of trade agreements such as the United States-Mexico-Canada Agreement (USMCA) and the Regional Comprehensive Economic Partnership (RCEP), which are influencing tariffs and market access. The post-Brexit trade adaptations by the UK are further complicating the global supply chain landscape. Castillo Ortega emphasised that understanding these shifts is crucial for businesses to mitigate risks while seizing new opportunities.
Sustainability is increasingly becoming a legal requirement in trade policies, with measures such as carbon pricing on imports expected to significantly impact supply chain costs. Castillo Ortega notes that sustainability standards, including the traceability of materials sourced for production, are redefining operational protocols for companies engaged in international trade.
In terms of strategic approaches, Castillo Ortega advises companies to enhance compliance measures by investing in trade compliance software and developing internal training programs. Optimising supply chain strategies through supplier diversification and leveraging technology, such as artificial intelligence for trade analytics, will be vital in navigating the intricate global trade regulatory environment.
As 2025 unfolds, businesses must remain vigilant and agile in response to these regulatory changes and market dynamics. The intersection of corporate governance, regulatory compliance, and global trade policies will continue to shape the operational landscape, requiring executives to adopt comprehensive strategies to thrive in the evolving business ecosystem.
Source: Noah Wire Services
Subscribe to Industry Updates
