The Securities and Exchange Commission’s (SEC) latest loss in the courts should remind people of how extensive its overreach has become. Earlier this month, the Fifth Circuit Court of Appeals struck down the SEC’s 2023 rule on Private Fund Advisors, realizing and once again proving how far the SEC has crept into the lives of citizens.

It is evident that the SEC has forgotten about its responsibility to protect private fund investors and provide transparency, competition, and efficiency to the market. If not for the recent judicial oversight, the SEC’s proposed rule would not only have become an incredible loss for private funds but also for the American economy and consumers.

Despite the recent win for investors in the courts, looming threats remain. It should come as no surprise that the SEC’s climate disclosure rule is just as harmful as the private fund advisors’ rule, if not more. The SEC’s misleading climate regulation states that it aims to set “standards” for how companies communicate with investors about climate-related risks. But it is destined to achieve the exact opposite.

The SEC’s recent advocacy for climate reporting stands to add on excessive restrictions and increase its regulatory control of the economy. The Commission’s climate disclosure rule will certainly have significant impacts on investors alike. 

It is essential to recognize the importance of The Fifth Circuit Court’s decision to overturn the SEC’s 2023 rule on Private Fund Advisors with SEC’s continuous ulterior motives presented in their climate disclosure rule. If anything, it proves that the SEC’s overreach is being rightfully recognized.

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