COSO withdraws draft corporate governance framework due to “shifting” regulations

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has withdrawn its draft corporate governance framework that it released in May, after “extensive feedback” and provisions in the recently passed “One Big Beautiful Bill” caused its authors to reconsider it.

The announcement, made Tuesday, came “amid a shifting regulatory and economic landscape for U.S. businesses and follows the recent passage of a wide-ranging federal law that introduces significant changes to corporate reporting and planning requirements,” COSO said in its statement.

COSO and PwC unveiled the draft framework in May, which incorporated “global leading practices to help organizations enhance governance effectiveness, manage risks proactively, and create long-term value,” and complemented and aligned with several previously released COSO frameworks on internal controls and enterprise risk management.