The Securities and Exchange Commission (SEC) has asked the Eighth Circuit Court of Appeals to lift its stay and issue a ruling in Iowa v. SEC, the case challenging the validity of its landmark Climate Disclosure Rules (Rules). At the direction of the court, the SEC filed a status report on July 23, 2025, advising that it “does not intend to review or reconsider the Rules” and requesting that “the Court proceed with the litigation and decide the case.”
Iowa v. SEC: Background
In March 2025, the SEC notified the court that it wished to withdraw its defense of the Rules in the litigation and, in April 2025, the court granted a stay motion brought by a group of 18 intervening states and the District of Columbia, which paused the proceedings until further order of the court.
The SEC emphasized that a judicial decision would clarify its authority and guide potential future actions regarding the Rules, which a majority of the current SEC commissioners believe overstepped the SEC’s statutory authority. The SEC noted that while it withdrew its defense of the Rules, many states intervened to defend them, leaving the adversarial process intact.
The issues in the case have been fully briefed, and the SEC will likely maintain the stay on enforcement pending the court’s decision. Even if the court lifts the stay and rules in favor of the Rules’ validity (as espoused by the prior administration), given the expressed views of the three Republican-appointed commissioners, who have doubted the agency’s statutory authority for the Rules, the SEC may consider additional actions. This could include replacement, recission, or modification of the Rules or initiating a new rulemaking process.
Key considerations for public companies
As we await the court’s decision, companies assessing climate-related risks and disclosures are encouraged to review and consider the SEC’s 2010 guidance on climate-related matters. As reinforced by SEC Commissioner and former Acting Chairman Mark T. Uyeda, climate and other ESG-related issues will be viewed through a “materiality” lens to determine whether such information would be important to a reasonable investor when deciding to buy, sell, or vote securities.
The outcome of Iowa v. SEC will have significant implications for the future of climate-related disclosure requirements in the US. As the court considers the legality and scope of the Rules, public companies are encouraged to continue to monitor developments in the case and ensure that their climate-related disclosures and controls and procedures around such disclosures are robust, consistent with existing SEC guidance, and responsive to evolving regulatory developments. Additionally, public companies should remain nimble to respond to a range of possible outcomes, including further rulemaking or changes in enforcement priorities.
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