SEC vs. Courts: The High-Stakes Showdown Over Climate Disclosure That Could Shake Every Investor’s Playbook
The finalized rules prompted legal challenges from several states and industry groups, prompting the Biden administration to put their implementation on hold. After Republican President Donald J. Trump began a second term in office in January, the SEC indicated it would not defend against legal challenges to the rules.
This maneuver initiated a standoff with the St. Louis-based United States Court of Appeals for the Eighth Circuit. In April, the Eighth Circuit directed the SEC to declare if the agency planned to “review or reconsider the rules at issue in this case.” Additionally, the appellate court asked the SEC to reveal if it intended to abide by the climate disclosure rules if the court denied the requests to review the rules. The Eighth Circuit’s order came in response to a submission by Democratic states, such as California, in defense of the climate rules.
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