Acting Securities and Exchange Commission Chair Mark Uyeda said his agency will seek to freeze court proceedings in a legal challenge to its final rule requiring climate-related investor disclosures, citing his opposition to the rule.
Details: Uyeda said he has directed SEC staff to ask the Eighth Circuit to not schedule the case for argument while the commission determines appropriate next steps, citing:
His and Commissioner Hester Peirce’s votes against the SEC rule.
Opposition by many public commentors.
Weighty questions about whether the SEC had statutory authority to issue the rule.
Concerns about the agency’s evaluation of costs and benefits.
The recent change in composition of the agency under the new administration.
President Donald Trump’s rulemaking freeze.
Background: The SEC in April 2024 suspended implementation of the ICBA-opposed rule pending the outcome of the legal challenges, pledging to defend the rule in court. Issued in March 2024, the rule requires disclosures on material climate-related risks, activities to mitigate or adapt to such risks, board oversight, and greenhouse gas emissions that reporting companies produce or indirectly cause by their activities.
ICBA View: In a national news release after the SEC issued the final rule, ICBA criticized its unprecedented costs and potential liabilities. In a 2022 comment letter, ICBA said the rule would drive many SEC-registered community banks away from the public capital markets.
