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.
