Gensler was also a frequent target of criticism for what some saw as an overreaching and fast-paced rule-making agenda. Both industry groups and Republicans in Congress have said many of Gensler’s rules were unworkable and, in some cases, an overstep of the agency’s authority, leading to a host of lawsuits targeting the SEC.
Perhaps the most controversial rule to come from Gensler’s tenure is the agency’s climate disclosure rule, which would require public companies to disclose an array of climate-related information in their registration statements and periodic reports. After its finalization in March, the rule saw nine lawsuits filed against it, which the 8th U.S. Circuit Court of Appeals in St. Louis agreed to hear on a consolidated basis. The SEC in April voluntarily halted implementation of the rule while the court hears the case.
In its Nov. 21 news release, the SEC said its climate rule and other rules focused on enhancing disclosure “are grounded in materiality, as investors need this information to make buying, selling, holding, and voting decisions.”
Gensler often defended the rule by noting that many companies make climate-related disclosures already, and the goal of the rule was to bring “consistency” and “comparability” to those disclosures.
Prior to his time at the SEC, Gensler served as chair of the of the Commodity Futures Trading Commission during the Obama administration and spent an earlier part of his career at the Treasury Department.
In his Nov. 14 speech, Gensler seemed to indicate that his time at the agency was coming to an end, making a nod to the results of the presidential election.
“Elections have consequences, and they should. I deeply believe in democracy,” Gensler said at the Practising Law Institute’s Annual Institute on Securities Regulation. “But God, what an honor it's been to be with my fellow ‘SEC-ers.’”