The Evolving SEC Landscape: Jarkesy v. SEC and the Proposed Climate Rules


Cornerstone Research hosted a virtual presentation by Joseph Grundfest of Stanford Law School, and Sy Lorne, former SEC General Counsel and vice chairman and chief legal officer of Millennium Management.

Professor Grundfest and Mr. Lorne will discuss the recent Fifth Circuit ruling in Jarkesy v. SEC as well as controversial SEC rule proposals related to climate disclosures:

  • Jarkesy v. SEC: This decision holds that at least some of the SEC’s administrative proceedings are unconstitutional because they violate the right to a jury trial and rest on an unconstitutionally broad delegation of authority. Unless and until the Supreme Court rules otherwise, Jarkesy’s implications potentially reach far beyond the SEC, and could portend significant constraints on the operation of many federal and state administrative agencies.
  • SEC climate disclosure rules: These controversial proposals call for significant expansion of emissions-related disclosures, and will be aggressively litigated. Professor Grundfest and Mr. Lorne will describe an alternative rulemaking strategy that has a superior survival probability on appeal, and that would still lead to significant climate data disclosure.


Joseph A. Grundfest

Former Commissioner, Securities and Exchange Commission;
W. A. Franke Professor of Law and Business, Emeritus,
Stanford Law School,
Senior Faculty, Rock Center for Corporate Governance,
Stanford University

Additional Speaker

Sy Lorne
Former General Counsel, Securities and Exchange Commission;
Vice Chairman and Chief Legal Officer, Millennium Management