The acting chair of the US Securities and Exchange Commission (SEC), Mark Uyeda, has signaled that the regulator may roll back a controversial climate rule requiring public companies to disclose risks related to environmental threats. The move comes after the business lobby group U.S. Chamber of Commerce sued the SEC, arguing that the rule is “deeply flawed” and could harm the capital markets.
Uyeda’s decision to delay oral arguments in the lawsuit has sparked criticism from Democratic Commissioner Caroline Crenshaw, who accused him of “abandoning” the appeal to align with his personal policy preferences. The SEC had previously required companies to disclose climate-related risks under a rule implemented by former Chair Gary Gensler.
Supporters of the rule argue that it provides investors with more information about potential threats from climate change, such as wildfires. Critics, however, claim that the rule is unnecessarily burdensome and that existing securities laws already require companies to provide material information to investors.
The SEC has a largely Republican majority, with two Democratic commissioners among five. The regulator’s decisions are likely to be shaped by the upcoming appointments of new commissioners, including Trump nominee Paul Atkins.
Source: https://finance.yahoo.com/news/u-market-watchdog-aims-pause-162555347.html