March 08, 2022

Banking Republicans Call on Biden Administration to Pause Financial Regulatory Efforts That Threaten America’s Energy Security

Regulations That Curtail Domestic Energy Make U.S. More Vulnerable to Russian Aggression

Washington, D.C. – As Russia’s invasion of Ukraine highlights the problem with the United States and our allies buying Russian energy, U.S. Senate Banking Committee Republicans are calling on President Biden and his administration to pause all financial regulatory efforts targeting America’s energy security. The senators’ request comes as reports indicate the Securities and Exchange Commission (SEC) plans to propose its climate risk rule as early as next week.

In a letter to U.S. Department of the Treasury Secretary Janet Yellen, the senators wrote:

“We write to express concern about the potential damaging effects to national security from the unprecedented efforts of federal financial agencies to develop regulations that some intend to use for limiting U.S. energy producers’ access to credit and capital. Such actions would begin to curtail the supply of domestic energy, leading to higher costs for American households and making our country and allies more vulnerable to the consequences of Russian aggression. The economic toll, as well as the destruction, casualties, and instability from Russia’s energy-based warfare are so significant that we urge you to immediately pause the development of all climate- and energy-related regulations within the Treasury Department and to urge all other federal financial regulators to follow suit.”

Meanwhile, the Biden administration has discussed easing sanctions on hostile oil nations run by brutal dictators, including Russian ally Venezuela, in order to replace Russian oil and gas imports. The senators specifically called on President Biden and Treasury Secretary Yellen to instruct federal financial regulatory agencies to delay all regulatory initiatives on climate change until the Biden administration develops a detailed plan to protect America’s energy security.

“Most importantly, these efforts by financial regulators, coupled with the Russian invasion of Ukraine, jeopardize the need for energy security, both domestically and for our allies and trading partners. Accordingly, we call on you and President Biden to instruct the federal financial regulatory agencies, including FSOC, to delay any regulatory initiatives on climate change and sustainability until the development of a detailed, comprehensive plan by the administration on energy security that takes into account the threat to global energy supplies from Russia and similar repressive regimes.”

To read the senators’ full letter, click here.