McHenry Slams SEC’s Final Climate Disclosure Rule
Washington,
March 6, 2024 -
Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement after the Securities and Exchange Commission (SEC) issued its final rule to require climate-related risk disclosures.
“The Securities and Exchange Commission is not a climate regulator,” said Chairman McHenry. “No matter how badly Chair Gensler wants to inflate his job description, that fact is undeniable. Republicans have consistently warned Biden’s regulators to stick to their knitting for the good of our financial system. With this rulemaking, Chair Gensler continues to make clear a partisan political agenda outweighs the SEC’s statutory mission. Given the substantial changes made since the rule was proposed, the SEC must reissue it for public comment to satisfy the requirements under the Administrative Procedure Act.
“Despite what Chair Gensler says, this rule will still have immense consequences for our capital markets and economy as a whole. When fewer companies are entering our public markets than any time in recent memory, we should be making it easier for firms to go and stay public. Instead, Chair Gensler is overstepping his statutory authority, piling on massive new compliance costs that will be destructive to workers, investors, and job creators alike. Our capital markets are currently the envy of the world. Unfortunately, with Chair Gensler continuing to implement such disastrous regulations—they may not be for long.
“Americans deserve answers. This is why the House Financial Services Committee will hold hearings to examine the impacts of this rule on our capital markets and address this gross regulatory overreach.”
The House Financial Services Subcommittee on Oversight and Investigations will hold a field hearing on March 18th to hear directly from Americans who will be impacted by this disastrous rule. The full House Financial Services Committee will then hold a hearing on April 10th to further explore the destructive impact of this rule on our economy, capital markets, job creators, and families.
Background:
On January 18, 2024 the House Financial Services Subcommittee on Oversight and Investigations, led by Chairman Bill Huizenga (MI-04), held a hearing entitled “Oversight of the SEC’s Proposed Climate Disclosure Rule: A Future of Legal Hurdles.” Lawmakers pressed witnesses on whether the Commission has the legal authority to mandate climate disclosures.
On June 28, 2023, Chairman McHenry, the Chairman of the House Judiciary Committee, Jim Jordan (OH-04), and the Chairman of the House Oversight and Accountability Committee, James Comer (KY-01), sent a letter to SEC Chair Gary Gensler identifying several potential violations of record keeping laws and Gensler’s inadequate response to previous inquiry, including those regarding the disastrous proposed climate disclosure rule.
On June 22, 2023, the House Financial Services Subcommittee on Oversight and Investigations, led by Chairman Bill Huizenga (MI-04), held a hearing entitled “Oversight of the SEC.” Lawmakers pressed SEC General Counsel, Megan Barbero, on the SEC’s lack of responsiveness to Congressional inquiry.
On May 9, 2023, Chairman McHenry and Subcommittee Chairman Huizenga sent a letter to SEC Chair Gary Gensler demanding that the Commission produce outstanding documents previously requested by the Committee including materials related to the SEC’s disastrous proposed climate disclosure rule.
On February 22, 2023, Chairman McHenry, the Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, Tim Scott (R-SC), and the Chairman of the Subcommittee on Oversight and Investigations, Bill Huizenga (R-MI), sent a letter to SEC Chair Gary Gensler demanding records and other information related to the proposed climate disclosure rule, including responses to previous requests by numerous members of both the House and the Senate that Chair Gensler has failed to provide.
On September 20, 2022, following the Supreme Court’s decision in West Virginia v. EPA, Republican Leader McHenry, the top Republican on the House Oversight and Reform Committee, James Comer (KY-01), and the top Republican on the House Appropriations Committee, Kay Granger (TX-12), sent a letter to SEC Chair Gary Gensler demanding he provide Congress with the clear authorities delegated to the Commission that justify its current and upcoming rulemakings including its climate risk disclosure proposed rule.
On March 21, 2022, Republican Leader McHenry issued a statement in response to the Securities and Exchange Commission’s proposal to mandate disclosure of mostly immaterial information related to climate change.
On March 20, 2022, Republican Leader McHenry and former SEC Chair Jay Clayton published an op-ed in the Wall Street Journal outlining how it is the role of Congress—not unelected and ill-suited financial regulators—to set the environmental policy of the U.S.
On January 10, 2022, Republican Leader McHenry and Senator Pat Toomey, the top Republican on the Senate Banking Committee, sent a letter to SEC Chair Gary Gensler raising serious concerns with Chair Gensler’s decision to limit outside input on rulemakings by providing unreasonably short public comment periods. Today’s rule is another example of Chair Gensler pursuing a major rulemaking, while limiting public input.
On December 15, 2021, Republican Leader McHenry issued a statement blasting SEC Chair Gensler for pursuing major rulemakings with inadequate public comment periods. Today’s rule is another example of Chair Gensler pursuing a major rulemaking with inadequate opportunity for public input.
On April 19, 2021—SEC Chair Gensler’s first day in office, Republican Leader McHenry and Congressman Bill Huizenga (MI-02), the top Republican on the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, sent a letter to Chair Gensler urging him to avoid mission creep at the Commission. Today’s rule is the exact mission creep the Republican Leaders warned against.
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