Wyoming Secretary of State, Chuck Gray, has voiced his objection to the Securities and Exchange Commission's (SEC) proposed rule change permitting the listing of "natural asset companies" (NACs) on the New York Stock Exchange (NYSE). Gray is the first Secretary of State to officially oppose NACs.
In a public comment submitted to the SEC, Gray said, "The SEC's unprecedented proposed rulemaking incentivizes both the woke ESG agenda and corporate abuses by foreign actors through the creation of a federal scheme designed to benefit 'natural asset companies' through a problematic framework allowing investors to hold ownership rights and 'management authority' over arbitrarily valued 'natural processes,' such as minerals, water, and even air across private and public land for the sole purpose of blocking any sort of use or development." He further added that "the proposed rules are nothing more than a radical environmentalist attempt to cripple Wyoming's core industries in an effort to further the Biden Administration's radical 30X30 land grab agenda".
Gray also raised concerns about foreign investment in these companies. He stated, "There appears to be no ban on foreign investment in natural asset companies, meaning foreign adversaries may be able to own shares in these companies, and exert their management authority to prevent Wyoming's core industries from ever being developed". Lastly, he claimed that "The proposed rule is yet another diabolical scheme to prevent the citizens of Wyoming from being able to reach our full potential and turn Wyoming's abundant natural resources against us, all at the whims of the Biden Administration's radical ESG agenda."
The SEC had proposed new investment vehicles known as "Natural Asset Companies (NACs)" on October 4, 2023. This proposal was made in collaboration with the Intrinsic Exchange Group (IEG) and in partnership with NYSE. Under this proposal, federal lands including national parks could become part of NACs with substantial "management authority". The proposal also enables foreign interests, including China, to establish and invest in NACs.
According to his letter, Gray strongly opposes the proposed rule change on the grounds that it introduces "disastrous consequences for Wyoming small businesses, landowners, and Wyoming's core industries." He also stated that the proposed rule conflicts with key priorities of his administration. These include protecting Wyoming’s investors from the harmful impacts of Environmental, Social, and Governance (ESG) investing strategies and preventing the abuses of corporate filings by potential foreign actors.
Gray criticized the lack of public input from the groups most affected by the rule. He claimed that "it was only after a coalition of Congressmen, led by Wyoming's own Congresswoman Harriet Hageman, that this sweeping rule was afforded more input from the public."
As Secretary of State, Gray's office is responsible for overseeing statewide election administration, registration of business entities, and Wyoming’s securities industry. He was elected as Wyoming's 24th Secretary of State in 2022.
The SEC reopened the public comment period on the proposed rule change for NACs last month. Originally set to end on January 2nd, they extended the deadline for comment submission to January 18th. Since this extension, hundreds of opposition comments have been filed.
