In a letter addressed to Securities and Exchange Commission (SEC) Chairman Erik Gerding, Congresswoman Harriet M. Hageman, along with thirty-one U.S. House Members, expressed deep concern over the SEC's proposed rule to approve the New York Stock Exchange's (NYSE) listing of Natural Asset Companies (NACs). The letter outlined the intricate nature of the proposal and raised critical questions regarding its potential impact on public and private lands.
According to Hageman's letter, the SEC's proposal, unveiled on October 4, introduces an investment vehicle allowing the buying and selling of undefined "rights" to various private and public lands, both domestic and foreign. NACs, conceptualized by the Intrinsic Exchange Group (IEG) in collaboration with the NYSE, are designed to hold rights to "natural assets" and assume responsibility for managing these assets.
One of the primary concerns highlighted in the letter is the lack of clarity and transparency surrounding the proposed rule. The SEC's apparent hurry to push through the proposal is evident in the short comment period and limited public notice beyond the Federal Register. The letter emphasizes the need for extended public engagement to fully comprehend the implications of a rule that could reshape the management and use of public and private lands.
“The bottom line is that this is more bad rulemaking by Biden’s bureaucrats that would take away more of our rights, and it must be stopped,” Rep. Hageman said, according to a press release on her website.
Key questions raised by Congresswoman Hageman and fellow House Members include: What are the "unique listing requirements" the NYSE refers to? Does the SEC claim oversight authority of NACs? If so, what oversight activities will the SEC perform in regard to NACs? By what right does the SEC have to confer "management authority" over federal lands?
The letter criticizes the initial 21-day public comment period provided by the SEC, with the plan to approve the NYSE's request to list NACs on January 2, 2024. While acknowledging an informal extension, the signatories urge the SEC to reopen the comment period and provide additional information, addressing the questions posed in the letter.
Rep. Hageman stresses the potential far-reaching consequences of the proposed rule, including the fundamental change in U.S. land access, management, use, and ownership. The fear is that allowing NACs to trade on the NYSE could lead to the auctioning of valuable resources to foreign entities, potentially compromising national interests.
The letter was signed by 31 U.S. House members demanding the SEC rescind the NAC proposed rule and reopen the comment period, respectfully requesting that the SEC provide answers to the questions no later than January 1, 2024.
