Today, during a hearing on the Securities and Exchange Commission’s (SEC) climate risk disclosure final rule, Chairman Patrick McHenry expressed strong concerns about the potential impact of the rule on the American markets and competitiveness. McHenry emphasized that the finalized rule could have severe consequences, stating, "We’re here to discuss the SEC’s recently finalized climate disclosure rule, which will be disastrous for American markets, job creators, workers, and investors. It’s costly, complex, and against the public good."
Highlighting recent instances where the SEC's actions have raised red flags, McHenry pointed out that a federal judge had imposed sanctions on the SEC for its actions in the DEBT Box case, the Ripple case, and the Grayscale case. He further criticized Chair Gensler's SEC for damaging the institution's reputation.
McHenry raised specific concerns about the economic implications of the climate disclosure rule, noting that the increased compliance costs could hinder firms from going or staying public. He also warned that everyday investors would be overwhelmed by the excessive non-economic information required by the rule, which was demanded more by non-economic actors and progressive stakeholders than by everyday investors.
Moreover, McHenry highlighted the potential negative impact on American workers, stating that the rule could lead to increased costs for companies, resulting in fewer job opportunities and higher expenses for consumers. He concluded by reiterating the catastrophic nature of the SEC's final climate disclosure rule on American markets and competitiveness.
In response to these concerns, McHenry urged Chair Gensler to reconsider the regulatory power grab and refocus on the SEC's statutory role of protecting investors and facilitating capital formation. He emphasized that if Gensler does not address these issues, Republicans will be compelled to take action to safeguard the interests of the markets and American competitiveness.