Margaret Byfield, Executive Director of American Stewards of Liberty, has called on the Securities and Exchange Commission (SEC) to reject the proposal of the New York Stock Exchange (NYSE) to list Natural Asset Companies (NACs). In a letter addressed to the Secretary of the SEC, Vanessa Countryman, on October 25, Byfield argued against the endorsement of NACs on the NYSE.
According to the letter, on October 4, 2023, the SEC introduced a proposed rule to endorse the establishment of a novel investment instrument called the "Natural Asset Company (NAC)." This innovative vehicle was developed through a collaboration between the Intrinsic Exchange Group (IEG) and the NYSE, with initial backing from the Rockefeller Foundation and environmental organizations like the World Wildlife Fund. The letter said NACs are designed to allow investors and governments to benefit from safeguarding natural resources generated by climate crisis policies. However, it is argued that behind this conservation-oriented initiative lies a broader agenda aimed at obtaining political and financial dominance over global natural resources, particularly within the US.
Byfield wrote that the IEG envisions a vast $5,000 trillion natural asset economy, leveraging an unconventional approach to value "natural processes" and "ecosystem services." Their aim is to derive value from safeguarding vital resources rather than traditional consumer goods production, with explicit prohibitions on harmful extractive activities. NACs, structured around Natural, Working, and Hybrid lands, are supposed to generate returns from ecotourism, carbon credits on natural lands, and commodity crop production on working lands. However, in order to operate, the letter said NACs must secure rights to fixed assets, including land, water, and federally protected lands, which may compromise property and natural resource rights in the U.S.
The proposed rule also grants companies management authority over various assets, including federal lands, which raises constitutional questions. Byfield also expressed concerns about the potential for foreign entities to invest in NACs, which could lead to foreign control over American resources. Additionally, the proposal has faced criticism for not prioritizing human flourishing and for disproportionately impacting disadvantaged communities.
With these issues in mind, Byfield said, “the SEC should not adopt the NYSE’s Proposed Rule. Further, steps should be taken to actively prevent NACs from being recognized as an appropriate or federally recognized form of a public company eligible to be listed on the NYSE. No federal funds should be used to support NACs, nor should federal lands or assets be made available to them.”
The American Stewards of Liberty (ASL), a non-profit organization, joined Byfield in writing the letter. ASL aims to defend property rights and local control by educating state and local officials, as well as property owners, about federal actions that threaten property rights. Byfield was joined by Craig Rucker, Founder and President of Committee for a Constructive Tomorrow, and Tracey Barton, Executive Director of Kansas Natural Resource Coalition, in signing the letter.
The SEC will now consider the arguments presented by Byfield and others as it evaluates the NYSE's proposal to list NACs.
