House Financial Services Committee Chairman French Hill, Senate Banking Committee Chairman Tim Scott, and Senator Tom Cotton have called for a comprehensive review of the Consolidated Audit Trail (CAT) by the Securities and Exchange Commission (SEC). The request was made in a letter addressed to SEC Acting Chairman Mark Uyeda.
The letter, also signed by Senators Boozman, Bill Hagerty, John Kennedy, and Representatives Bill Huizenga, Ann Wagner, and Barry Loudermilk, expressed concerns about the CAT's handling of personally identifiable information (PII), cybersecurity vulnerabilities, and funding structure.
In their communication, lawmakers emphasized that "the prohibition on collecting investor PII must be formally codified (rather than via rescindable exemptive relief) and already-collected PII must be expunged." They further highlighted the need for enhanced cybersecurity measures for remaining data and criticized what they described as the CAT’s "bloated out-of-control budget."
The letter urged the SEC to pause controversial elements of the CAT while reconsidering its position on ongoing litigation related to it. Lawmakers noted that such steps were consistent with actions taken in other cases initiated during the Biden administration.
They acknowledged recent efforts by Commissioner Peirce and others at the SEC to address privacy concerns but insisted more action is necessary. The legislators stated that a full review should address not only PII collection but also funding issues opposed by most current commissioners.
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