The United States Securities and Exchange Commission voted on 27 March 2025 to cease its defence of the climate-related disclosure rules it had adopted just over a year earlier.
The rules in question were adopted on 6 March 2024 and attracted legal challenges from Republican-led states and private parties. The commission had voluntarily stayed implementation of the rules from April 2024 onwards, pending the resolution of litigation before the Eighth Circuit Court of Appeals in a case brought under the caption Iowa et al. v. SEC.
THE LEGAL CHALLENGE
The states that brought the legal challenge contended that the SEC had exceeded its statutory authority and imposed a disproportionate compliance burden on listed companies.
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