U.S. Senators Katie Britt, John Kennedy Fight to Protect Americans’ Privacy
WASHINGTON, D.C. — U.S. Senator Katie Britt (R-Ala.) joined Senator John Kennedy (R-La.) in reintroducing the Protecting Investors’ Personally Identifiable Information Act. Their legislation would prohibit the Securities and Exchange Commission (SEC) from requiring brokers to submit investors’ personally identifiable information (PII) to its Consolidated Audit Trail (CAT).
Earlier this month, the SEC announced they would provide an exemption from the reporting requirement for PII, including names, addresses, and years of birth, to the CAT. Senators Britt and Kennedy’s legislation would make this exemption permanent.
“The SEC’s Consolidated Audit Trail database holds millions of Americans’ sensitive financial information. Since taking office, I’ve pushed back against the profound risks the CAT poses to Americans’ individual liberty and personal privacy. The Protecting Investors’ Personally Identifiable Information Act would permanently prohibit the requirement of submitting personal information to the CAT, protecting American investors,” said Senator Britt.
The Senators’ legislation would ensure the SEC can obtain personally identifiable information related to investors only by requesting it on a case-by-case basis. The bill would also require the SEC to delete personally identifiable information once the agency resolves the investigation or issue that required that information.
“Americans assume their private information is secure when they invest money in the U.S. stock market. However, the SEC’s unlawful Consolidated Audit Trail could put their data in jeopardy. My bill would protect American investors from foreign enemies and bad actors by preventing the SEC from collecting personal information it doesn’t need and storing it on a dangerous database,” said Senator Kennedy.
In October 2023, Senators Britt and Kennedy sent a letter to Gene Dodaro, the Comptroller General, requesting that the Government Accountability Office (GAO) investigate the potential risks, constitutional issues, and privacy concerns raised by the CAT.
Senator Britt also called for withdrawing the CAT following the hack of the SEC’s official account on X announcing the approval of Bitcoin exchange-traded funds (ETFs) to be listed on all registered U.S. securities exchanges. “These types of cyber vulnerabilities are primary reasons why the SEC should halt its efforts to advance rulemakings that pose serious risks to Americans’ personal information . . . The SEC needs to get serious about cybersecurity, including by withdrawing the Consolidated Audit Trail and cyber disclosure rules,” Senator Britt stated.
In September 2024, Senators Britt, Tom Cotton (R-Ark.), and 12 of their Congressional Republican colleagues sent a bicameral letter to then-SEC Chair Gary Gensler calling for the immediate suspension of the recently effective rule filings tied to the CAT.
Senator Britt also cosponsored the Protecting Investors’ Personally Identifiable Information Act in the 118th Congress. The full text of the bill can be found here.
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