During a House Appropriations Committee hearing last week, Rep. Ashley Hinson (R-IA) discussed the SEC's climate disclosure rule.
Category
🗞
NewsTranscript
00:00Appearing before our committee today, we know your predecessor, Chairman Gensler, really weaponized the position he was in to go after Iowa farmers, businesses, and workers by pushing a climate agenda that I think reached far beyond the jurisdiction of the commission and the SEC.
00:15Just one example of rogue actions under the previous administration.
00:19So in March of this year, I was very pleased to see the commission vote to stop defending that controversial climate disclosure rule.
00:26So thank you for helping to protect hardworking Americans against an egregious and outrageous rule.
00:32What is the status of the rule now, and what does the commission plan to do in terms of formally rescinding that rule?
00:40Well, so thank you for the question, Congresswoman.
00:43That rule was adopted, I think, March of last year by the commission.
00:49And so, but then quickly there were lawsuits filed in various jurisdictions, and so the commission at the time basically put it on ice voluntarily.
01:04So that's the status of it now.
01:06There's still, the lawsuits have been consolidated in the Eighth Circuit, based in St. Louis, and so we're actively studying, you know, what to do with respect to the rule.
01:18We were, the Eighth Circuit posed some questions to us, and we need to answer those here in the coming weeks.
01:26And so we're, that's actively working with my colleagues and the staff to figure out the next steps.
01:34Well, I distinctly remember my line of questioning in this hearing room last time, and I asked Chairman Gensler if he could find anywhere in the code where the authorization existed at the SEC to go in this direction,
01:46and he could not defend that, and I think that that's probably what the outcome will be.
01:50And again, it's about reversing regulations and overburdensome rules.
01:55And the U.S. Chamber actually came out in January and made clear the urgent need to roll back the worst of the regulatory onslaught from the past four years.
02:03This is about creating an environment for our small businesses and our workers to actually be able to thrive, and I agree.
02:10So what is your status of review of burdensome and unnecessary regulations at the SEC, and what does that process look like?
02:18Well, the thing about burdensome and unnecessary regulations is that it raises costs for everybody,
02:24and it inhibits innovation in the marketplace because of the uncertainty of those rules,
02:30and especially if they create impediments that don't necessarily balance the costs and benefits for those rules.
02:41So that's part of the essential part of rulemaking and then reviewing rules to make sure that with changes in technology
02:48and in the marketplace that we stay up to speed as far as making sure that the rules are fit for purpose
02:56and then to pare back or to add depending on, you know, what's needed.
03:01The FTC, we had a commissioner in last week, and they have a portal online to take feedback
03:07and kind of tips on what could be rolled back or maybe seen as anti-competitive.
03:12Are you anticipating doing something similar where people can flag for you rules that you can review?
03:16Yeah, in fact, I was just talking about that yesterday.
03:19That was probably a good idea.
03:21We will enter into roundtables like on the crypto side.
03:26We've done that and have, I think, one or two more left to do that the task force is planning.
03:32But more generally, you know, to have like a suggestion box, let's say, you know,
03:37is not a bad idea to address anomalies that the staff of the SEC not being active practitioners outside, you know, may not be aware of.
03:49So it's important.
03:51Well, I certainly bet some of my constituents have some strong feedback as to some of those ideas,
03:56and we could probably get that list started for you.
03:58What would you say are your top three goals with deregulating at the SEC?
04:04Well, you know, I don't know about deregulating, but maybe just focusing on what the, you know,
04:11the real issues are that where, again, there are impediments that are thrown up.
04:17The securities laws have been around now 90 years, 90-some years.
04:21And so, you know, anything needs to be, everything needs to be looked at in the spring cleaning, if you will,
04:28because things build up over time and people don't have time to address, you know,
04:34things that might have become problematic.
04:36So I do think that it's incumbent on us to make sure that we are as efficient as possible
04:43and that we have well-tailored rules that are not creating, you know, workarounds or things where people can take advantage of the rules.
04:53Certainly.
04:53Thank you, Chairman.
04:54Thank you, Mr. Chairman.
04:55I yield back.
04:56Thank you very much.
04:57The chair now recognizes the gentleman from...
05:00You can let the people who haven't had a chance...
05:02So you're waving your time?
05:03I would like to have it, but I know they haven't had a chance to go waving.
05:08It's a good try.
05:11Chair now recognizes the gentleman from North Carolina, Mr. Edwards, for five minutes.