Lexology PRO quoted Mintz Member Jacob Hupart in an article about a status report the SEC filed, asking the Eight Circuit Court of Appeals to decide whether its proposed climate disclosure rule is legal. The SEC declined to confirm whether it plans to implement the regulation.

Jacob outlined several reasons why the SEC might prefer the case to proceed, even while preserving the option to withdraw the rule later.

He noted that a court decision could be faster than the lengthy notice-and-comment rulemaking process and could help avoid procedural pitfalls. A definitive ruling, Jacob says, seems more likely than not to strike down the rule, and “would presumably limit the ability of the SEC in future administrations to engage in similar rulemaking with respect to climate-related issues.”

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Lexology PRO