(Tampa Free Press)—The Securities and Exchange Commission (SEC) has announced it will no longer defend its controversial climate change disclosure rules, a significant victory for the Liberty Justice Center and its allies. The decision comes after the Liberty Justice Center, in collaboration with the Pelican Institute, filed a legal challenge arguing the rules violated the First Amendment and exceeded the SEC’s authority.
The legal challenge, filed in March 2024 on behalf of the National Legal and Policy Center and the Oil and Gas Workers Association, targeted the SEC’s rules that imposed sweeping new disclosure requirements on corporations related to climate change. Critics argued these rules forced companies to disclose information unrelated to the SEC’s core mission of regulating securities and protecting investors.
In a letter submitted to the U.S. Court of Appeals for the Eighth Circuit, the SEC stated it would withdraw its defense of the rules and forego oral arguments. The letter, signed by SEC counsel, acknowledged that a majority of the current Commissioners opposed the rules and the Commission had decided to concede its litigation position.
The lawsuit argued that the rules violated the First Amendment by compelling companies to speak on climate-related issues and that the SEC had overstepped its authority, as the rules were not explicitly authorized by Congress.
In February 2025, the SEC’s Acting Chairman publicly stated that a majority of the current Commissioners opposed the rules, paving the way for the Commission’s decision to withdraw its defense.
“These illegal rules never should have been adopted. They’re about forcing companies to support an ideological agenda, not regulating securities and protecting investors,” said Jacob Huebert, President of the Liberty Justice Center. “The SEC is right to drop its defense of these indefensible rules.”
Sarah Harbison, General Counsel with the Pelican Institute, added, “The SEC tried to force companies to speak in ways that aligned with the government’s ideological agenda, not their business mission. That’s not just bad policy – it’s unconstitutional. We’re proud to have stood up for the First Amendment.”