January 19, 2024
SEC’s Proposed Rule to Lock Up American Lands Withdrawn Amid Backlash
WASHINGTON, D.C. – On January 17, a proposed rule at the Securities and Exchange Commission (SEC) that threatened to lock up both public and private lands was withdrawn amid intense public pushback, including from AFPI. The proposal sought to facilitate the public listing of a new investment vehicle called the Natural Asset Company (NAC) on the New York Stock Exchange.
NACs would dubiously monetize ecological processes and openly prioritize maximizing these processes over generating financial returns. Rather than facilitating investor choice and financial innovation, the proposed rule risked allowing the listing of companies with deeply ambiguous financial value and weak legal legitimacy. Further, NACs would serve as a vehicle to prohibit essential productive uses on land, including energy and agricultural production, that are foundational to American life.
The withdrawal of the proposal is a positive step; however, it is highly problematic that this detrimental concept even got this far in the rulemaking process. To cement for the public record the dangers of this proposal, AFPI has submitted public comments.
AFPI will remain vigilant against continuing attempts to weaponize our financial institutions and lock up American land.