January 17, 2024

DENVER – Western Energy Alliance today submitted comments on the Securities and Exchange Commission’s (SEC) proposed rule to list Natural Asset Companies (NAC) as a new category of publicly traded companies on the New York Stock Exchange (NYSE). The association’s comments come right as the SEC withdrew the proposal shortly before the filing deadline. If advanced the proposal would have allowed NACs to monetize ecological values on public, private and tribal lands for “sustainable” activities and to prohibit productive activities such as oil and natural gas development.

The Alliance’s comments pointed out that the broad authority SEC proposed had no basis in law and conflicted with existing congressional mandates that explicitly delegate public land management to various federal agencies.

“We applaud the SEC for withdrawing this incredibly flawed rule. Never before has an extreme proposal been pushed to allow corporations to package up and control land, including tribal lands and public lands that all Americans own, and allow anyone from day traders to foreign nations to buy, sell, and short their stocks,” said Kathleen Sgamma, president of the Alliance. “Furthermore, SEC’s attempt to set broad policy on the novel concept of monetizing ecological values was advanced without any mandate from Congress.”

“What the SEC and NYSE were proposing was crony capitalism disguised as conservation. The rule would have granted one obscure company, Intrinsic Exchange Group (IEG), monopoly power to set reporting and accountability standards while sharing in the revenue of every single NAC created. IEG lists among its investors and supporters the Rockefeller Foundation and the Nature Conservancy. What kind of sweetheart deal was this potentially, and who was behind this cozy relationship? The SEC and NYSE have not been forthcoming,” concluded Sgamma.

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