SEC Withdraws Legal Defense of Climate Disclosure Rules

The SEC, under Acting Chair Mark Uyeda, is reconsidering its defense of the Biden-era climate disclosure rules following legal challenges from various business interests and Republican state attorneys general. Uyeda has requested that the Eighth Circuit Court not schedule arguments as the commission deliberates on its next steps, a move that signals a potential retreat from the rules adopted in March 2024. Critics, including Benjamin Schiffrin from Better Markets, argue that the SEC has the statutory authority to require climate risk disclosures, emphasizing the importance of transparency for investors. Schiffrin warns that the SEC's hesitance could harm market stability by withholding essential information about climate-related risks to public companies. The SEC's shift reflects ongoing tensions over regulatory approaches to climate change and corporate accountability. As the situation unfolds, the SEC will notify the court of its position once it has reached a consensus.