SEC moves to scrap Biden-era climate disclosure rules amid backlash

The US Securities and Exchange Commission (SEC) has proposed scrapping climate-related disclosure rules introduced under the Biden administration. Officials at the agency cited a return to its core legal mandate as the reason for the move. The decision has drawn strong approval from free-market advocates at the Competitive Enterprise Institute (CEI). The SEC’s proposal to rescind the climate disclosure rules marks a significant shift in policy. Agency representatives argued that the rules exceeded its legal authority and strayed from its primary mission of investor protection.

CEI experts quickly praised the decision. President Kent Lassman called it the most important deregulatory action by the SEC in over 50 years. Ondray T. Harris, the institute’s general counsel, stressed that the SEC should not act as a national climate regulator. He added that any disclosure requirements must focus solely on protecting investors. Other CEI figures echoed these views. Senior fellow Marlo Lewis described the proposal as a major victory for economic freedom and limited government. Richard Morrison, another senior fellow, argued that the SEC lacked the statutory power to enforce such rules and highlighted additional flaws in their design.

The SEC’s move to abandon the climate disclosure rules aligns with its stated commitment to core regulatory functions. CEI analysts have welcomed the change as a necessary correction to overreach. The proposal now awaits further review before finalisation.