The debate as to whether regulators should govern through the establishment of general principle or specific requirements is an ongoing one, and will necessarily vary with the circumstances. For a good discussion of the issue, see . In an area that is fast-changing and technology-driven, and where the regulated entities have a strong incentive to keep up with best practices, a principles-based framework seems the right approach.

Assuming that the Chinese government does not agree to allow U.S. regulators access to accounting firms based in China, the logical next step would be for Chinese issuers to deregister under the Exchange Act. In addition to delisting, which will be mandatory under the bill as passed, deregistration may also require Chinese issuers to seek to reduce the number of their U.S. holders, perhaps by conducting buybacks.

There are a number of interpretive points in the bill that are worth…

Commissioner Peirce's statement reflects her skepticism of standardized ESG disclosure, a skepticism that is consistent with the current majority view at the SEC. Division Director Blass asks challenging questions as well.

Supporters of a mandated ESG disclosure regime (e.g., ) advocate for a GAAP-type disclosure format. To date, however, they have not put out any specific proposals as to what such disclosure would look like or require. Perhaps these are to come shortly.

Comment letters that Democrat and Republican legislators submitted with respect to the initial concept release reflect the divergent economic philosophies of the political parties. Senator Sherrod Brown that the proposed rule changes would allow companies to pay their workers in stock when they are most in need of "a steady paycheck." By contrast, Patrick McHenry, the Republican Ranking Member of the House Financial Services Committee, for the benefits of allowing equity compensation for…