SEC regulator moves to rescind Biden-era climate rule

Investing.com -- The Securities and Exchange Commission is developing regulations to eliminate a Biden-administration rule that required companies to disclose climate-related spending and risks to investors, according to a notice posted on the U.S. budget office website.

The action follows a year-long period during which the SEC did not inform a federal court whether it would modify or defend the 2024 regulations against industry-backed legal challenges.

SEC Chair Paul Atkins stated the agency is working to rescind the rule to return to the SEC's core mandate of requiring corporate disclosures to focus on information that is material to investors, which he said aligns with its legal authority.

The SEC adopted the rules under former President Joe Biden, requiring publicly traded companies to disclose climate-related risks, emissions and spending to investors. Republican-led states and an industry group immediately filed court challenges against the regulations. The SEC subsequently stayed the rule pending the court proceedings.

The SEC voted in March 2025 to stop defending the rule in court, following criticism from industry and conservative groups who argued the regulation exceeded the SEC's legal authority. An appeals court then suspended consideration of the case.

The SEC may act on the proposal after the Office of Management and Budget completes its review of the draft regulations. A timeline for final action has not been established.

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