SEC Halts Defense of Climate Disclosure Rule Amid Republican Leadership Shift

The SEC, now led by a Republican majority, has paused litigation on a Biden-era rule requiring companies to disclose climate-related risks.

The SEC announced it will no longer defend a rule mandating public companies to disclose climate risks and emissions data in certain cases.
The rule, finalized in 2024, faced significant opposition from Republican-led states and industry groups, citing overreach and economic harm.
Acting SEC Chair Mark Uyeda, appointed by Trump, called the rule 'deeply flawed' and directed staff to pause litigation while evaluating next steps.
The rule was approved under a Democratic-majority SEC but is now likely to be overturned with the current 2-1 Republican majority.
The decision aligns with broader Trump administration efforts to roll back Biden-era environmental and energy policies.