Sponsors (6)
The bill increases privacy protections and reduces reporting burdens by prohibiting collection of certain personal identifiers in order/reportable-event reports, at the cost of making regulator and law‑enforcement investigations and cross‑border cooperation more difficult and creating potential implementation ambiguity.
Retail investors and other individual market participants will no longer have names, addresses, Social Security numbers, emails, phone numbers, or IP addresses collected for order/reportable-event reports, reducing their exposure to data breaches and strengthening privacy protections.
Exchanges, trade associations, and their members will face lower compliance and data‑storage burdens because they are not required to collect or retain personally identifying information for these reports.
Regulators and market participants gain a clearer statutory definition of personally identifiable information, encouraging privacy‑protective reporting standards and providing a clearer legal baseline for future rulemaking.
SEC staff, law enforcement, and fraud investigators will have reduced access to identifying information in reports, making it harder to detect, investigate, and deter market manipulation, fraud, and other threats to market integrity.
Cross‑border investigations and cooperation with foreign authorities could be impeded because exchanges may lack the identity data needed to support international evidence‑sharing and prosecutions.
Ambiguity about what non‑PII linkage methods are permitted could produce inconsistent implementation across exchanges, creating compliance uncertainty and gaps that may undermine both privacy goals and enforcement effectiveness.
Based on analysis of 2 sections of legislative text.
Bars the SEC from requiring specified personally identifiable information for order or reportable-event reporting under the cited regulation, and defines covered PII.
Official title: To prohibit the Securities and Exchange Commission from requiring that personally identifiable information be collected under consolidated audit trail reporting requirements, and for other purposes.
Introduced February 21, 2025 by Barry D. Loudermilk · Last progress February 21, 2025
Prohibits the Securities and Exchange Commission from requiring national securities exchanges, national securities associations, or their members to submit personally identifiable information (PII) about a market participant to satisfy order or reportable-event reporting requirements under the cited reporting rule. The bill defines PII broadly to include name, address, birth date or year, Social Security number, phone number, email, and IP address. The measure is narrowly focused: it only sets a short title and creates a ban on the SEC requiring PII for those specified reporting requirements. It does not create new agencies, authorize spending, or otherwise change reporting obligations except to bar the collection of PII under that rule provision (or successor regulation).