Jay Clayton, Senior Policy Advisor and Of Counsel to Sullivan & Cromwell and former Chair of the SEC, appeared on CNBC’s Squawk Box to discuss the possibility that the SEC may soften its proposed climate disclosure rules.
“The rule that’s proposed is an entirely new disclosure regime not based in real economic return, but based in an idea about how we are going to transition or what are going to be the drivers of the transition of our energy and climate policy, when we don't have an energy and climate policy,” Jay said.
Comparing U.S. disclosure rules to those in Europe, Jay noted that European financial market regulation drives social policy, which he believes has proven inefficient and ineffective. In the United States, in contrast, the governing principle that drives disclosure is whether the disclosure is material to a financial decision and provides choice for companies and investors.
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