Mr. Uyeda's strong criticism of the SEC's rule proposals as to ESG follows on the heels of his .

At this point, the SEC is struggling with deep divisions that impact its standing. It is not just the lack of consensus as to the substance of the SEC's rule proposals. What puts even more strain on the SEC's reputation is that the two minority party commissioners have both suggested the agency's rulemaking process is fatally flawed in that it doesn't properly allow for public comment…

Mr. Gensler says competition is good, a claim unlikely to generate vigorous debate. What can be disputed is both (i) the changes that lead to increased competition and (ii) the harms Mr. Gensler believes have resulted from insufficient competition.

One point Mr. Gensler makes is that "central intermediaries [may] benefit from scale, network effects and access to valuable data." That seems true. However, one reason that scale becomes so important is that the costs of regulation (which…

As the level of U.S. government debt increases relative to the size of the U.S. economy, U.S. regulators ought to be extremely cautious as to regulatory changes that would scare dealers away from taking on large positions. Even a small increase in the risk premium required to incentivize dealers to take on block positions will be expensive for the U.S. government.

Wow. Read Commissioner Uyeda's whole speech. The above summary does not adequately convey his deep concerns over the consequences of the current rulemaking process under SEC Chair Gary Gensler. Mr. Uyeda challenges directly the credibility of the entire SEC rulemaking process under this administration.

(See also SEC Commissioner Peirce's .)