Utah Treasurer Marlo M. Oaks has voiced strong opposition to a proposed initiative by the Securities and Exchange Commission (SEC) that may pave the way for the formation of a Natural Asset Company (NAC) on the New York Stock Exchange (NYSE). In a press release issued on December 11, Oaks expressed concern over the proposal's potential to significantly affect rural economies and public lands.
"The proposed creation of Natural Asset Companies is one of the greatest threats to rural communities in the history of our country," Oaks said in the press release. "Under the proposal, private interests, including foreign-owned sovereign wealth funds, could use their capital to purchase or manage farmland, national and state parks, and other mineral-rich areas and stop essential economic activities like farming, grazing, and energy extraction. Recreating on Utah’s incredible natural lands could also face serious curtailment."
According to Oaks, if this proposal is implemented, it could lead to the permanent removal of public and private lands from productive use under the guise of addressing climate change. He emphasized that private interests - including foreign-owned sovereign wealth funds - might acquire or manage key lands such as farmlands, national parks, and mineral-rich areas. This could result in halting crucial economic activities like farming, grazing, and energy extraction which would have significant implications for Utah's natural lands and recreational opportunities.
Oaks explained that NACs are distinct from traditional companies as they prioritize maximizing land's "ecological services" over profit generation. This approach would prohibit certain activities such as energy extraction and use of farm machinery on NAC-designated land.
"In addition to the economic harm NACs would cause," said Oaks, "there are national security implications as well. Russian, Chinese, or Saudi sovereign wealth funds might see particular value in locking up U.S. natural resources."
In pointing out the potential interest from foreign sovereign wealth funds, Oaks underscored the necessity of protecting national resources from undue foreign influence. He also noted the "unusually short" 21-day public comment period before the SEC's decision, expected on January 2. Oaks urged Utah residents to express their concerns to the SEC, NYSE, and federal and state representatives, highlighting the potential negative impact this proposal could have on a significant portion of land in Utah owned by the federal government.
