SEC Chairman Discusses Status of Rescinding Controversial Climate Disclosure Rule

Status of the Climate Disclosure Rule

• 📌 The SEC adopted a controversial climate disclosure rule in March of last year, but subsequently put it on ice voluntarily due to lawsuits.
• 🔍 The lawsuits have been consolidated in the eighth circuit, and the SEC is actively studying what to do with respect to the rule, needing to answer questions from the court in the coming weeks.
• 💡 The SEC's predecessor, Chairman Gensler, is described as having 'weaponized' his position to push a climate agenda beyond the commission's jurisdiction.

Review of Burdensome Regulations

• ⚖️ The SEC is reviewing rules to ensure they are fit for purpose, especially with changes in technology and the marketplace.
• 📉 Burdensome and unnecessary regulations are seen as raising costs, inhibiting innovation, and creating uncertainty due to an imbalance of costs and benefits.
• 🗣️ The idea of a 'suggestion box' or portal for public feedback on rules that could be rolled back or seen as anti-competitive is being considered, similar to a system used by the FTC.

Goals for SEC Rulemaking

• 🎯 The focus is on addressing impediments and 'real issues' rather than broad deregulation.
• 🧹 Securities laws, being around 90 years old, require regular review and 'spring cleaning' to address issues that may have become problematic over time.
• ✅ The goal is to ensure efficiency and well-tailored rules that do not create workarounds or opportunities for exploitation.