SEC Withdrawals NAC Rule Proposal Following Pressure from Congresswoman Boebert
Following pressure from Congresswoman Lauren Boebert and the House Committee on Natural Resources, the Securities and Exchange Commission (SEC) announced this week they are withdrawing their proposed rule which would have allowed foreign owned Natural Asset Companies (NACs) to be listed on the New York Stock Exchange (NYSE).
Congresswoman Lauren Boebert (CO-03) said, “America’s public lands are not for sale. The SEC and New York Stock Exchange have withdrawn their misguided proposal that would have allowed China, Russia, and other foreign adversaries to invest in companies whose sole purpose was to lock up federal lands and prevent energy development, farming, mining, and logging. We should utilize our federal lands for multiple-use including responsibly developing fossil fuels, agriculture, and our other natural resources right here in America.”
Background:
On October 4, 2023, the SEC published notice of a proposed rule, paving the way for the NYSE to list NACs. This new type of public company would allow foreign adversaries like China and Russia to control our national parks, federal lands, and private property.
Unlike conventional companies focused on services or tangible goods, the SEC defined NACs as "a corporation whose primary purpose is to actively manage, maintain, restore, and grow the value of natural assets and their production of ecosystem services."
Essentially, NACs would acquire rights to U.S. land, enabling them to hinder its utilization for natural resource production, including fossil fuel development, mining, logging, and large-scale farming—all explicitly prohibited by NACs in the current proposal. Consequently, NACs would empower shareholders, including foreign entities, to invest in companies explicitly dedicated to restricting land use and impeding the development of productive natural resources, especially within America’s national parks and public lands.
The decision to withdraw this proposal comes after Congresswoman Boebert and several Natural Resources Committee members sent a letter to the SEC condemning the proposed rule. Read the letter Here.