The U.S. Supreme Court’s decision last week to curb the power of the Environmental Protection Agency may put regulations from other federal agencies at risk, including those from the Securities and Exchange Commission, according to legal sources.

On Thursday, the justices ruled 6-3 against the EPA, writing that the agency overstepped its authority in drawing up rules on limiting coal plant emissions in West Virginia, FA-IQ sister publications FundFire and Ignites write.

The decision could have implications for the SEC and other agencies, such as the Department of Labor, as it could challenge the scope of these agencies' rule-making powers, according to FundFire. In the case of the EPA, the court ruled that the agency overstepped its authority by creating rules based on an Obama-era regulation without explicit instruction from Congress to do so.

"This is a stinging rebuke not only to the EPA but to the general Biden-administration agenda," said Lawrence Cunningham, a professor of law at Georgetown University, according to FundFire.

A spokesperson for the SEC declined comment to FundFire, while a spokesperson for the DOL did not respond to the publication’s request for comment before publication deadline.

"The implications go well beyond EPA rulemakings to include any federal regulations that involve “major questions” of economic and political import, Ankur Tohan, a Seattle-based partner at K&L Gates, told Ignites.

“I'm anticipating there will be a series of cases that will come forward essentially to try to test: Where do you draw this line between a major question and a minor question?” Tohan said.

While the list could include industry issues ranging from Regulation Best Interest to use of ESG funds in retirement plan menus, the SEC’s proposed climate disclosure rule in particular could be vulnerable.

In fact, when asked about other regulations that the court’s recent decision could impact, Sen. Patrick Toomey, R-Pa., took direct aim at the SEC rule, Ignites reported.

“The SEC is attempting to impose this whole climate disclosure regime that is completely divorced from financially material information that has historically been the guide for what has to be disclosed, with no authority from Congress to do that,” he said, according to Ignites.

The Chamber of Commerce — which has successfully challenged SEC regulations — and the Investment Company Institute criticized the climate disclosure rule, the publication writes.

A spokesperson for the chamber didn’t respond to Ignites’ request for comment and a spokesperson for the ICI declined comment on last week’s Supreme Court ruling, according to the publication.

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