HR 257119th CongressIn Committee

SEC Act of 2025

Introduced: Jan 9, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The SEC Act of 2025 would amend the Securities Exchange Act of 1934 to prevent the Securities and Exchange Commission (SEC) from requiring issuers to make climate-related disclosures unless those disclosures are material to investors. In short, the bill directs the SEC to tie any climate-disclosure requirements to what a reasonable investor would deem important for investment decisions, effectively limiting or blocking mandates for climate information that are not considered material. The bill also provides a new short title: the Stop Environmental Calculations Act of 2025, or the SEC Act of 2025. Introduced in the House and referred to the Committee on Financial Services, the text adds a new subsection (e) to Section 23 of the 1934 Act, explicitly prohibiting non-material climate-related disclosures.

Key Points

1Prohibits the SEC from requiring climate-related disclosures that are not material to investors.
2Adds a new subsection (e) to Section 23 of the Securities Exchange Act of 1934 containing the prohibition.
3Provides the act with the short title “Stop Environmental Calculations Act of 2025” or the “SEC Act of 2025.”
4The measure would constrain SEC rulemaking by mandating that any climate-related disclosures be tied to material investor information.
5The text currently contains only this prohibition and does not specify additional rules, penalties, or enforcement mechanisms beyond the statutory prohibition.

Impact Areas

Primary group/area affected- Issuers (public companies that must file disclosures) and corporate management, who would face reduced mandatory climate-disclosure requirements.- The Securities and Exchange Commission, whose rulemaking authority on climate disclosures would be constrained by the bill.- Investors and market participants seeking climate-related information as part of investment decisions, who may receive less climate-specific information if not deemed material.Secondary group/area affected- Corporate lawyers, compliance officers, and accounting professionals responsible for regulatory disclosures.- Climate-risk analysts and ESG-focused financial services firms that rely on climate disclosures for analysis and product development.Additional impacts- Potential changes in the cost and complexity of compliance for issuers due to fewer mandatory climate-disclosure requirements.- Possible shift in investor transparency and climate-risk communication in capital markets.- Potential tensions with other climate-disclosure initiatives or state/federal efforts outside the SEC that aim to increase environmental reporting.- Unclear implications for enforcement and how private actors or courts would interpret “material to investors” in this context, since the bill text provides limited detail beyond the prohibition.

Generated by gpt-5-nano on Nov 18, 2025