SEC Told Court It Won’t Revisit Climate Disclosure Rules

Latham & Watkins reports that on July 23, 2025, the US Securities and Exchange Commission submitted a status report to the Eighth Circuit regarding ongoing litigation over its climate disclosure rules.

These rules, adopted in March 2024, require companies to include climate-related information in registration statements and annual reports.

The litigation, consolidated in State of Iowa et al. v. US Securities and Exchange Commission et al., remains stayed pending the court’s review of the SEC’s position following a change in presidential administrations, and the Commission’s decision to stop defending the rules.

After adoption during the Biden administration, the climate disclosure rules faced multiple legal challenges from states and industry groups. With the shift in administration, the SEC stayed enforcement and withdrew its defense, while several states continued as intervenor-respondents.

The Eighth Circuit ordered the SEC to address whether it planned to review or reconsider the rules, whether it would adhere to them if upheld, and why it might decline such review.

That procedural step set the stage for the Commission’s July 2025 response.

In its report, the SEC said it does not intend to review or reconsider the rules, but requested the Eighth Circuit proceed to decide the merits, arguing the dispute remains active.

The Commission acknowledged that a majority of its members believe it lacked statutory authority, but deferred to the courts on interpretation. The SEC did not commit to implementing the rules if upheld, stating it would decide later whether to rescind, replace, or modify them.

Commissioner Caroline Crenshaw criticized the response as “wholly unresponsive” and asserted that the majority has no intention of allowing the rules to take effect, and must follow statutory procedures as outlined by the Administrative Procedure Act to repeal or change them.

The SEC’s position creates significant uncertainty for regulated entities and litigants. Lawyers should track the Eighth Circuit’s next steps, as the case could establish important precedent on administrative authority and rule rescission processes.

Understanding the interplay between agency leadership changes, pending litigation, and statutory rulemaking obligations will be essential for advising clients on regulatory compliance and for anticipating potential shifts in disclosure requirements.