Acting SEC Chair Uyeda Pauses Climate Disclosure Rule

In a February 11 statement, Securities and Exchange Commission (SEC) Acting Chair Mark Uyeda announced that he has directed SEC staff to notify the Eighth Circuit Court of Appeals of the “changed circumstances” and request the circuit court not schedule the case for argument. In his statement, Acting Chair Uyeda notes the change in leadership at the Commission, adding that “the recent change in the composition of the Commission, and the recent Presidential Memorandum regarding a Regulatory Freeze, bear on the conduct of this litigation.” He noted that both he and Commissioner Hester Pierce voted against the final rule because they believe it to be outside the authority of the Commission as well as unnecessary and too costly for entities to comply with. Acting Chair Uyeda states the Commission will “promptly notify the Court of its determination about its positions in the litigation.”

The final rule on “Enhancement and Standardization of Climate-Related Disclosures for Investors” was adopted on March 6, 2024 while Gary Gensler was Chair of the Commission. The final rule would have required registrants to provide certain climate-related information in their registration statements and annual reports highlighting climate-related risks that have a material impact on their business, among other things. Shortly after adoption, numerous actions were filed in various courts around the country with the Eighth Circuit ultimately claiming the right to move forward.

The Commission ultimately did not move forward with the fund industry rule “Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices,” although it did finalize amendments to the Names Rule which go into effect for many fund groups in December 2025.

Click here to read Acting Chair Uyeda’s statement.
Click here to read the final rule on “The Enhancement and Standardization of Climate-Related Disclosures for Investors.