President Joe Biden is prepared to veto a Senate resolution that would repeal the administration’s rule compelling public companies to make certain cybersecurity disclosures.

If passed, the resolution, introduced by Sen. Tom Tillis (R-NC), would rescind the Securities and Exchange Commission rule, which covers cybersecurity risk management, strategy, governance, and incident disclosures, after it was implemented last month. But the White House announced Biden’s veto threat Wednesday, contending that the regulation, which is unpopular with the private sector, keeps investors informed and sets uniform cybersecurity oversight and governance standards.

“Ransomware attacks are up 45% year over year,” according to a White House Office of Management and Budget statement. “The lack of transparency by public companies about cyber incidents impacting their operations and data is fueling increasing cyberattacks across all sectors and all industries.

“Greater transparency about cyber incidents, as required in the SEC’s rule, will incentivize corporate executives to invest in cybersecurity and cyber risk management,” the OMB added.

Nonetheless, Republicans such as Tillis argue that the SEC rule creates another layer of bureaucracy without directly addressing cybersecurity concerns. The White House counters that publicly traded companies already have a fiduciary duty to disclose material cybersecurity incidents to investors that “could be reasonably expected to affect corporate operations, brands, and share prices.”

CLICK HERE FOR MORE FROM THE WASHINGTON EXAMINER

“Reversing the SEC’s rulemaking would not only disadvantage investors who deserve to have a clear understanding of the cyber risk underlying their investment but would also cause companies to undervalue investments in cyber programs to the detriment of our economic and national security,” the OMB wrote. “The administration believes these SEC disclosure requirements provide needed transparency to protect investors and incentivize cybersecurity investment.”

The Senate could consider the resolution on Wednesday.