All of the Republicans on the Senate Banking Committee, as well as Democrat Senator Joe Manchin, have signed onto a Congressional Review Act (CRA) resolution to overturn the SEC’s recent decision to introduce Climate Disclosure rules. These new rules are part of the ESG initiative at the SEC and are viewed by many as beyond the boundaries of the SEC’s mandate.
Last week, a House Financial Services Committee hearing took place, during which multiple witnesses criticized the rule as costly, cumbersome, and without merit. They will also act to reduce the number of public firms—a number that is already in decline due to the Commission’s regulatory creep.
Ranking Member Senator Tim Scott commented on the CRA:
“The SEC’s final climate disclosure rule threatens economic opportunity across the country, and it must be overturned. Over and over again, SEC Chair Gensler has disregarded the real-world impacts of his aggressive regulatory agenda in his dogged pursuit of left-wing political priorities. This rule is no exception. The SEC’s mission is to regulate our capital markets and ensure all Americans can safely share in their economic success – not to force a partisan climate agenda on American businesses. This rule is federal overreach at its worst, and the SEC should stay in its lane.”
Scott has described the Climate Disclosure rules as “federal overreach at its worst.”
The statement included a reference to the fact that Senator Scott and Representative Patrick McHenry, Chairman of the House Financial Services Committee, had asked SEC Chairman Gary Gensler for records and other information related to the proposed climate disclosure rule. The request was made in February 2023 and remains unfilled.
