Jan. 12, 2024
To all involved at the SEC: I am urging the SEC to NOT allow the NYSE to list “Natural Asset Companies” or NACs, pursuant to File No. SR-NYSE-2023-09. I am a capitalist and believe in free markets. That said, I respect financial systems benefit from foundational rules which cannot and must not be manipulated to gird ethical behavior and fairness. As market expert Carol Roth warns, "The continued efforts to financialize productive natural resources to subvert the legal system, to pervert the capital markets, and to cause harmful outcomes for both investors and the US alike cannot be enabled." Capital markets were not my career. However, those in that field make cogent argument NACs corrupt capital markets for political outcomes. I've come to learn NACs don't seek to manage resources toward practical, realistic production, rather they would coerce control of them to serve quixotic visions of "climate justice." Again, to quote Ms. Roth, "Not only could this impact our ability to generate and access energy, critical minerals, water and food, but it could also put those decisions in the hands of institutions, such as foreign governments and their sovereign wealth funds, who could invest in these NACs and have de facto control over America’s resources. In my opinion, NACs are an effort by nefarious corporate elites/entities, domestic and foreign, to subvert our Constitution's constraint on government regarding infringement on unalienable rights. They 'end run' Congressional examination of and legislation regarding private ownership and use of private property and associated natural resources. Moreover, they negate judicial review of that regulation regarding its constitutionality. In recent years, we've seen the critically important effect of such review of what was determined to be unlawful Executive Branch fiat overreach motivated by 'Green Agenda / climate change' politics (i.e., West Virginia v EPA (Dkt#20-1530 / 597 US __ (2022), Sackett v EPA (Dkt #21-454 / 598 US __ (2023)). Ms Roth's summation is poignant and portent if the SEC moves administratively, without legislative authority, to approve NACs, "If you have any questions on whether this is a political tool meant to subvert the legal process, read the words of IEG’s Chairman, who said, “We were looking for a private-sector approach that wasn’t dependent on policy, it wasn’t dependent on traditional taxes, regulation or philanthropy to price in these assets and give investors the opportunity to invest directly in nature, whether that’s for climate or biodiversity.” (Source: https://eenews.net/articles/invest-in-nature-might-be-possible-with-natural-asset-companies/). The bad outcomes here will include the subjugation of the fiduciary duty to do what is in the best interest of investors. Critical natural resources will be subject to the consolidation of a handful of wealthy and powerful individuals. And, even more frightening, control of productive resources- as well as our food supply, water, energy, tourism and more- could end up in the hands of foreign nations and their sovereign wealth funds or other bad actors." Please recognize the devastating harms NACs will cause to free markets, our nation's economy and sovereignty, and most significantly, the liberty and property rights of The People. To support the institution of NACs offends the Constitution and, arguably, provides preventable capital markets access/aid to enemies of the US. Thank you for your consideration.