State Officials Urgently Request Biden to Disapprove New Rule

( – In December 2023, the Securities and Exchange Commission (SEC) reported that the New York Stock Exchange (NYSE) proposed a rule change to the NYSE List Company Manual. The change would allow for common equity securities of Natural Asset Companies (NACs) to trade on the NYSE. Recently, a group of state officials wrote a letter opposing the rule proposal.

On January 17, the Daily Caller reported that nearly 30 state officials and financial professionals wrote a letter to SEC Secretary Vanessa Countryman, asking her to reject the proposal. In the missive obtained by the outlet, the group said they had many concerns about the request, one of which was the rule would put an “economic value” on “processes not backed by economic activity.” The officials stated that their worries stemmed from the fact that NACs are private entities working to reduce “economic activity,” that NACs use “untested methods of accounting,” and claims that NACs could “present serious national security concerns.”

The officials’ concerns follow a previous letter sent by 15 members of the House Committee on Natural Resources to SEC Chair Gary Gensler and SEC Director of Division of Trading and Markets Haoxiang Zhu on January 11. The legislators requested more information from the SEC regarding the proposed rule change. The committee members said they were “deeply concerned” about the “potential impact NACs” could have on federal land management, wildlife habitat conservation, and natural resource development.

The missive stated the proposal would allow NACs to “control the rights and management authority” over natural reserves and swaths of farmland. The language of the proposed rule states that money raised by listing NACs on the NYSE must be used for “conservation, restoration, or sustainable management” purposes. It would also prohibit any activities on the land deemed “unsustainable.” Another point of concern surrounded who exactly would own said properties and who would have control over public lands.

It’s unclear how the SEC will rule.

~Here’s to Our Liberty!

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