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In a move that could spell the end for a Biden-era climate disclosure rule, the U.S. Securities and Exchange Commission (SEC) urged the Eighth Circuit on Tuesday to delay litigation over its climate reporting requirements. The request signals that the now Republican-led agency may abandon the controversial regulation, which mandates public companies to disclose greenhouse gas emissions and climate risks.

With acting Chair Mark Uyeda at the helm—alongside fellow Republican Commissioner Hester Peirce—the SEC is undergoing a seismic shift, one that could derail years of regulatory efforts aimed at standardizing corporate climate disclosures.

Political Shake-Up Freezes the Case

Uyeda, who opposed the regulation when it was passed last year, directed SEC staff to inform the court of the agency’s changed stance. "I have directed the commission staff to notify the court of the changed circumstances and request that the court not schedule the case for argument," he said in a public statement.

The commission’s lone Democrat, Caroline Crenshaw, swiftly pushed back, criticizing Uyeda for sidelining the full commission in the decision. "The only things that have changed since the rule was passed have been matters of politics and not substance," Crenshaw argued.

Her frustration underscores the stark contrast between the SEC’s previous Democratic majority, which approved the rule in March 2024, and the new Republican leadership, which appears poised to dismantle it.

The Rule at the Center of the Storm

The regulation, passed under Democratic leadership, required publicly traded companies to disclose greenhouse gas emissions and assess climate-related financial risks, including damage from extreme weather events like hurricanes and wildfires. The measure aimed to bring consistency to climate disclosures that some corporations already voluntarily provided.

But the SEC’s path to implementation was anything but smooth. Business groups and Republican-led states flooded the courts with lawsuits, arguing that the agency was overstepping its authority by acting as a climate regulator. In response, the SEC halted enforcement of the rules just a month after adoption.

Now, with Uyeda leading the agency, the tide is shifting even further.

"Not Our Job," Says SEC’s New Leadership

Uyeda made it clear that he does not stand behind the legal arguments the SEC has previously made in court. "The commission’s briefs previously submitted in the cases consolidated in the Eighth Circuit do not reflect my views," he said, questioning both the SEC’s authority and the economic feasibility of the regulation.

His skepticism echoes the stance taken by many of the rule’s opponents, who insist that the SEC has no business policing climate disclosures. The regulation, they argue, extends beyond financial oversight and wades into environmental policy—territory they believe should be left to agencies like the Environmental Protection Agency.

Crenshaw Fights Back

Defending the rule, Crenshaw dismissed claims that the SEC had overreached. "We are not an environmental agency," she admitted, "but we are in the business of requiring public company disclosure about risk. We have done it myriad times without having our authority questioned."

Her statement underscores the crux of the debate: Is climate risk a material concern for investors? Supporters of the regulation insist that it is, while opponents claim it is a backdoor attempt to push green policies onto corporations.

What’s Next?

With the SEC in Republican hands, the future of the climate rule appears bleak. The agency’s request to pause litigation suggests that, rather than defending the regulation, it may be preparing to scrap it altogether.

For now, the legal battle remains frozen, leaving investors, businesses, and environmental advocates in limbo—wondering whether corporate climate disclosures will be a thing of the past or a fight yet to come.