SEC's E-Delivery Proposal Shifts Default to Digital, Keeps Paper Option

The Securities and Exchange Commission proposed Regulation E-Delivery on July 16, 2026, a rule that would make electronic delivery the default method for how investors receive regulatory information under federal securities laws, according to The National Law Review. The proposal, which Bloomberg called a "long-awaited" shift, would end the current practice where firms must mail paper packets unless an investor affirmatively consents to electronic delivery.

The National Law ReviewUnited States: Paper Cut: The SEC “FINALLY” Rethinks E-Delivery

Under the new rule, broker-dealers, investment advisers, registered funds, and issuers could send disclosures electronically without first obtaining consent, though a paper opt-out would remain available. InvestmentNews reported that the proposal "would end decades of paper-first delivery rules, but keeps a paper opt-out and draws early praise from fund and annuity industry groups." The rule functions as a safe harbor, meaning compliance is optional for firms that meet its conditions, noted The National Law Review.

InvestmentNewsSEC moves to make electronic delivery the default for investor disclosures

SEC Commissioner Hester M. Peirce voiced strong support for the proposal, calling it a first step toward modernizing communications. "I view this proposal as an important first step toward modernizing how we deliver information to investors." :: sec.gov Peirce emphasized that the rule focuses on changing the default delivery method rather than the content or format of disclosures, and she highlighted benefits such as reduced printing and mailing costs for both firms and investors.

sec.govSEC Commissioner Peirce Supports Proposed Regulation E-Delivery as First Step Toward Modernizing Investor Disclosures

Industry groups have responded positively. InvestmentNews noted that fund and annuity industry groups offered early praise, and SeekingAlpha reported that the change would cut costs for issuers and intermediaries. Finextra added that the SEC aims to expand the ability of all registrants to use electronic delivery, a move Commissioner Peirce said would "benefit investors, issuers, and market intermediaries alike," according to the SEC's own release.

While the proposal marks a significant departure from paper-first rules, The National Law Review observed that Regulation E-Delivery "would supersede decades of interpretive guidance built around notice, access, and evidence of delivery." The rule now enters a comment period before any final adoption, giving stakeholders a chance to weigh in on the details.