Corporate political donations “became the biggest business story of the day” because some U.S. politicians tried to overturn a democratic election to keep the losing presidential candidate in office, and then some companies announced some variant on “we would prefer not to fund the end of democracy so we are going to pause our donations to those politicians.” And the SEC can make rules on how companies disclose their contributions, and I suppose those rules can require companies to give a narrative description of whether they support or oppose democracy, whether they have any explicit policies on backing violent coups, etc. And just as with board diversity, being forced to articulate those policies will tend to push corporations in the direction of, you know, not backing coups. Is the SEC the last bastion of defense of the American constitutional order? Sure, why not.
Find Matt Levine at Bloomberg.