The Securities and Exchange Commission proposed scrapping an 80-year-old rule that lets activist shareholders submit proposals and seek votes on governance, environmental, and social issues. The proposal is open for public comment for 60 days.

S.E.C. chair Paul Atkins said the move reflects his highest regulatory priorities, arguing no rule is immune from review. Ending the rule would let states regulate shareholder proposals.

The U.S. Chamber of Commerce praised the proposal, saying activists used the rule to advance their own agendas. Advocacy groups blasted it. Benjamin Schiffrin of Better Markets called depriving shareholders of this right "unconscionable." Glenn Davis of the Council of Institutional Investors warned of a "race to the bottom" in state corporate law. Erick Russell, Connecticut treasurer, said it weakens accountability tools.

The rule was adopted in 1942. The move is part of the Trump administration's financial deregulation push, which also includes a proposal for semiannual reporting.