Tuesday, May 28, 2024

Kennedy, Scott Introduce Resolution to Block Biden SEC from Enforcing “Woke Climate Disclosure Rule”

by BIZ Magazine

WASHINGTON – Sen. John Kennedy (R-La.), along with Sen. Tim Scott (R-S.C.), has introduced a resolution of disapproval under the Congressional Review Act (CRA) aimed at blocking the Biden administration’s Security and Exchange Commission’s (SEC) climate disclosure rule.

The rule, titled “The Enhancement and Standardization of Climate-Related Disclosures for Investors,” would mandate that companies disclose certain climate-related risks, such as greenhouse gas emissions and the financial impact of natural disasters like hurricanes, floods, and tornadoes.

Kennedy criticized the Biden administration for its perceived overreach, stating, “At every opportunity, the Biden administration abuses its rulemaking power to force a radical climate agenda down Americans’ throats. The Senate should move quickly to correct the SEC’s misguided regulation, which will cost companies billions of dollars to comply with and will force investors to prioritize politics in their decision making.”

The resolution of disapproval comes in response to the SEC’s finalization of the rule in March, which, if not blocked by Congress, would affect over 7,000 American companies, imposing significant compliance costs on businesses across the U.S. economy.

Sen. Tim Scott echoed Kennedy’s sentiments, condemning the rule as a threat to economic opportunity and accusing SEC Chair Gensler of prioritizing left-wing political agendas over economic realities. “The SEC’s mission is to regulate our capital markets and ensure all Americans can safely share in their economic success—not to force a partisan climate agenda on American businesses,” Scott remarked.

Kennedy and Scott’s resolution of disapproval has garnered support from several other senators, including Mike Crapo (R-Idaho), Mitch McConnell (R-Ky.), and Joe Manchin (D-W.Va.), among others.

This move adds to ongoing scrutiny of the SEC’s regulatory agenda under Chairman Gary Gensler, with senators questioning the cost and impact of the climate disclosure rule during hearings in the Senate Banking Committee.

The resolution underscores the broader debate over climate policy and regulatory authority, highlighting tensions between environmental objectives and economic considerations within the business community and Congress.

The Senate is expected to consider the resolution in the coming weeks, as lawmakers navigate the complex landscape of climate regulation and economic policy.

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