Hickory Sun

Republican Chairman Patrick McHenry expressed strong opposition to the Securities and Exchange Commission's (SEC) climate risk disclosure final rule during a hearing held by the House Financial Services Committee. McHenry criticized the rule, stating that it would have disastrous consequences for American markets, job creators, workers, and investors.

McHenry emphasized that the final rule, as prepared for delivery, is costly, complex, and against the public good. He highlighted that the rule exceeds the SEC's authority and is a part of the Biden Administration's climate regulatory policy agenda.

While acknowledging the reality of climate change, McHenry clarified that the hearing is about the proper role of the securities regulator and criticized the SEC for overstepping its statutory mandate. He raised concerns about the negative impact the rule would have on markets, job creators, and everyday investors.

McHenry pointed out that the rule would increase compliance costs for public companies significantly, potentially hindering firms from going or staying public. He also expressed worries that the rule would overwhelm investors with non-economic information, ultimately hurting American workers and competitiveness.

McHenry called on SEC Chair Gensler to abandon the regulatory power grab represented by the climate disclosure rule and refocus on the SEC's core responsibilities of protecting investors, maintaining fair markets, and facilitating capital formation. He warned of potential Republican action if the SEC does not change course.