State financial officers blast SEC over rushed 'natural asset companies' proposal

A group of state financial officers this week wrote to Securities and Exchange Commission Chairman Gary Gensler slamming the SEC's "unusually brief" comment period for a proposed rule allowing the creation of so-called "natural asset companies" (NACs).

Under the proposal, NACs would be able to secure listing on the stock exchange and would purchase land to block its use for "unsustainable extractive activities," according to Utah Treasurer Marlo Oaks.

"The resulting conversion of investor money into unusable wildlands has the potential to be one of the most significant misallocations of capital in history," he declared in a Wall Street Journal op-ed.

While the SEC held a three-week comment period on the proposal, the unusually short timeframe prompted the ire of 21 state financial officers, who wrote to Gensler demanding he extend the comment period by 60 days.

"The SEC announced the rule change on September 29 and provided for only 21 days of public comment. This public comment period is unusually brief and is insufficient, given the significance of the rule being considered," they wrote.

"We are aware of many interested parties who would have provided public comment if given sufficient time to prepare and submit their comments," the group continued. "We have many concerns regarding the substance of the rule and the implications it would have on the markets and the lands of states we represent. We would appreciate the opportunity to address them through a reasonable public comment process."

State Financial Officer Foundation (SFOF) CEO Derek Kreifels insisted that the rule "will not only upend the accepted standards of value by which businesses are judged, it would pave the way for ESG fanatics to remake the American landscape.

"NACs would lock away vital resources that have underwritten America's prosperity, sacrificing them on the altar of climate alarmism," he further asserted. "That the SEC would weigh such a decision after such a ridiculously short comment period could only suggest they are trying to sneak this measure through without necessary scrutiny. The SEC must reopen the comment period to allow concerned parties to weigh in."

Ben Whedon is an editor and reporter for Just the News. Follow him on X, formerly Twitter.