We have explained that the District Court upheld the SEC’s conflict minerals rules. Recently, oral argument on the appeal was heard by the U.S. Court of Appeals for the District of Columbia Circuit. Some press reports have speculated because of tough questioning by the appellate panel that the appeals court may invalidate the law. It’s a lot to read into the tea leaves though. See TheCorporateCounsel.net, eenews, Compliance Week, Main Justice and The Hill.
One of the principal objections to the rule is the cost of compliance. The best explanation of why the law was enacted I have seen can be found here, which includes a discussion about an announcement by a major manufacturer of conflict minerals free products.