and will go into effect for some companies later this year, requires public companies to explain their reasoning for issuing stock buybacks, a common practice that can increase the value of a company's shares and reward shareholders.
"We are leading this coalition of states in opposition to the SEC buyback rule because the federal government again overreaches with a shortsighted and misguided policy," Reyes stated on Tuesday. "This rule will have severe consequences not only for investors and companies, but for everyday Americans and retirement account holders. We applaud the advocacy of the U.S. Chamber in this matter and join with it in standing up for the people of America.
In a statement prior to the vote on the new buyback regulation, SEC Chairman Gary Gensler said he supported the rule because it increases "transparency and integrity" in the process and helps investors make informed decisions.