Washington D.C. – U.S. Senators Katie Britt (R-Ala.) and Tom Cotton (R-Ark.), along with 12 other Congressional Republicans, have sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler, urging the immediate suspension of recently enacted rule filings tied to the Consolidated Audit Trail (CAT). The lawmakers are expressing concerns over the SEC’s decision to move forward with these filings, citing potential risks to investor privacy and fairness in the judicial review process.
The CAT system, designed to track all securities transactions in the U.S., has raised concerns among legislators over its potential implications for individual privacy and the legality of associated fees. The letter from the group warns that proceeding without proper oversight threatens to undermine investor confidence and could infringe on personal privacy rights.
“As members of Congress and Amici Curiae in these cases, we have a vested interest in ensuring that the Commission adheres to its statutory authority,” the lawmakers stated in their letter. “The CAT poses profound risks to Americans’ individual liberty and personal privacy.”
The lawmakers also argue that if significant new fees are imposed on American investors, the courts should have a chance to review the legality of the system before such fees take effect. They call for a pause on the CAT-related fees, emphasizing the need for public comment and judicial oversight.
In addition to Senators Britt and Cotton, the letter was co-signed by Senators Tim Scott (R-S.C.), John Boozman (R-Ark.), Kevin Cramer (R-N.D.), Pete Ricketts (R-Neb.), Steve Daines (R-Mont.), Jerry Moran (R-Kan.), Bill Hagerty (R-Tenn.), John Kennedy (R-La.), and Representatives French Hill (R-Ark.), John Rose (R-Tenn.), Steve Womack (R-Ark.), and Alex Mooney (R-W.Va.).
The letter follows previous efforts by Senators Britt and Kennedy, who requested an investigation last October from the Government Accountability Office (GAO) into the potential risks and constitutional issues associated with the CAT. The GAO investigation is ongoing, and concerns over the system’s implications for privacy and oversight remain at the forefront of the debate.
The full text of the letter sent to SEC Chair Gensler is publicly available, detailing the lawmakers’ request for the suspension of the CAT fees to allow for further review and public input.
