TheCorporateCounsel.net

The SEC litigation team has asked the 8th Circuit Court of Appeals to hold off on scheduling oral argument on the Commission’s climate-related disclosure rules, pursuant to a 7-paragraph directive issued yesterday by Acting SEC Chair Mark Uyeda. His statement recaps the opposition that he and Commissioner Hester Peirce registered against the rules when they were adopted – as well as ongoing concerns about costs vs. benefits and the Commission’s statutory authority and procedural compliance. It concludes:

These views, the recent change in the composition of the Commission, and the recent Presidential Memorandum regarding a Regulatory Freeze, bear on the conduct of this litigation. I believe that the Court and the parties should be notified of these changes.

Therefore, I have directed the Commission staff to notify the Court of the changed circumstances and request that the Court not schedule the case for argument to provide time for the Commission to deliberate and determine the appropriate next steps in these cases. The Commission will promptly notify the Court of its determination about its positions in the litigation.

The Commission has committed to submitting a status report to the court within 45 days. Although Commissioner Caroline Crenshaw issued this response statement saying that she still supports the rule and believes the agency acted within its authority, given the current makeup of the Commission and broader developments, I’d be shocked if the “next steps” involve continued defense of mandated climate disclosure. (But don’t forget about the possibility of disclosure in other regimes, like California!)

– Liz Dunshee