Today, Utah Attorney General Sean D. Reyes announced that the U.S. Securities and Exchange Commission (SEC) will not approve a proposed rule to allow the NYSE to list “Natural Asset Companies” (NACs) on the stock exchange, after a coalition of AG’s objected to the proposed rule a week ago. On January 9, AG Reyes co-led a 25-state letter to the SEC asking it to reject the rule change. NACs are a novel corporate structure designed to take land off the market to prohibit productive economic uses.
General Reyes issued the following statement:
I ardently commend the SEC for withdrawing this ill-advised and illegal rule change and listening to the concerns of this coalition of 25 attorneys general regarding the dangers of Natural Asset Companies.
This is a resounding win for our states and our constituents, as we protect access to multiple legal, productive, and responsible uses of our lands and other natural resources.
As AGs, we will continue to defend our state lands, liberties, and people against unreasonable and unlawful activist ESG actions that attempt to circumvent Congress and subject the American people to a radical political agenda.
The creation of NACs and proposal to list them on the NYSE was a new front in the effort to promote ESG policies at the expense of economic growth. According to the NYSE Group’s former president, Stacey Cunningham, “[w]ith the introduction of Natural Asset Companies, the NYSE” would “provide investors an innovative mechanism to financially support the sustainability initiatives they deem critical to our future.” Cunningham characterized the proposed rule change as “another example of the NYSE tapping into our community to drive meaningful progress on ESG issues with a solutions-based approach.”
The January 9 letter was co-led by the State of Kansas and joined by 23 other states.
