On March 27, 2025, the SEC announced that it voted (2-1) to end its defense of the final enhanced and standardized climate-related disclosure rules (the Climate Rules). The SEC previously adopted the Climate Rules on March 6, 2024. The Climate Rules faced multiple immediate legal challenges, which were consolidated in the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit). In April 2024, the SEC stayed the Climate Rules while the litigation remained pending but continued litigating in support of the Climate Rules. On February 11, 2025, Acting Chairman of the SEC Mark Uyeda issued a statement directing the SEC’s staff to request that the Eighth Circuit delay scheduling oral arguments in the litigation involving the Climate Rules. Following the SEC vote on March 27, 2025, SEC staff sent a letter to the Eighth Circuit court stating that the SEC wishes to withdraw its defense of the Climate Rules. In addition, it noted that SEC counsel is no longer authorized to advance the arguments in the brief the SEC had filed and so yields its oral argument time back to the court or other parties as the court determines.
Shortly following the SEC’s announcement, SEC Commissioner Caroline Crenshaw issued a statement criticizing this decision. At this time, the court has not yet responded.
