The SEC's quandary on access

Today's WSJ reports that the SEC is no closer to a compromise over shareholder proxy access than when it punted by putting two proposals out for comment. It's getting pressure to start over. Although Cox is said to support access, he's losing support for this on the Commission.  As a result, the story says:

People close to Mr. Cox say he is leaning toward voting for the Republican-supported proposal that would deny access. Those people say that approach has the advantage of having a rule in place for the 2008 proxy season and opens an opportunity to revise it to allow access the following year.

Funny that the SEC doesn't know what to do, except that it thinks it needs to do something. It would seem that this quandary would make even more attractive my suggestion, e.g., here, that the SEC should defer to state corporate law on this internal governance area. More precisely, the SEC should let states determine when shareholders can nominate directors and initiate other actions.

Whatever the flaws of state corporate competition, can they be worse than turning state corporate law into a political football game?