Washington, D.C. — Senator Tom Cotton (R-Arkansas), Senate Banking Committee Chairman Tim Scott (R-South Carolina), and House Financial Services Committee Chairman French Hill (Arkansas-02) today sent a letter to Acting Chairman of The Securities and Exchange Commission Mark Uyeda to launch a comprehensive review of all aspects of the Consolidated Audit Trail.

Additional signers of the letter included Senator Boozman (R-Arkansas), Senator Bill Hagerty (R-Tennessee), Senator John Kennedy (R-Louisiana), Congressman Bill Huizenga (Michigan-04), Congresswoman Ann Wagner (Missouri-02), and Congressman Barry Loudermilk (Georgia-11).

In part, the lawmakers wrote:

“The prohibition on collecting investor PII must be formally codified (rather than via rescindable exemptive relief) and already-collected PII must be expunged. Cybersecurity measures for the remaining data must be enhanced. And the CAT’s bloated out-of-control budget must be addressed... . Further, it would appear appropriate for the Commission to pause and reconsider its position with respect to ongoing litigation related to the CAT, as it has done for other cases commenced during the Biden administration.”

Full text of the letter may be found here and below.

February 28, 2025

Mr. Mark Uyeda

Acting Chairman

U.S. Securities and Exchange Commission

100 F Street NE

Washington, DC 20549

The Consolidated Audit Trail (CAT) has been a highly controversial endeavor that has raised many concerns from Members of Congress, including with respect to (i) the unwarranted collection of personally identifiable information (PII) from millions of American investors, (ii) potential cybersecurity vulnerabilities, and (iii) its inequitable funding structure.

We are pleased that you and fellow Commissioner Peirce have repeatedly acknowledged these longstanding concerns and applaud the Commission for its recent steps to protect the financial privacy of American investors.

However, there is more work to be done. The prohibition on collecting investor PII must be formally codified (rather than via rescindable exemptive relief) and already-collected PII must be expunged. Cybersecurity measures for the remaining data must be enhanced. And the CAT’s bloated out-of-control budget must be addressed.

Given these continuing concerns, the Commission should launch a comprehensive review that covers all aspects of the CAT. In doing so, the Commission should take additional steps to pause the CAT’s most controversial elements—not only the collection of customer PII, but also the problematic funding structure that a majority of the current Commission voted against. Further, it would appear appropriate for the Commission to pause and reconsider its position with respect to ongoing litigation related to the CAT, as it has done for other cases commenced during the Biden administration.

Thank you for your prompt attention to this matter.

Washington, D.C. — Senator Tom Cotton (R-Arkansas) and Senator Tim Scott (R-South Carolina) today introduced the PLO and PA Terror Payments Accountability Act, legislation that would impose sanctions on foreign persons and entities that provide payments to Palestinian terrorists and the families of terrorists as part of the Palestine Liberation Organization (PLO) and Palestinian Authority’s (PA) system of terror compensation.

Senators Ted Cruz (R-Texas), Pete Ricketts (R-Nebraska), Ted Budd (R-North Carolina), Eric Schmitt (R-Missouri), Marco Rubio (R-Florida), Bill Hagerty (R-Tennessee), Kevin Cramer (R-North Dakota), Dan Sullivan (R-Alaska), Rick Scott (R-Florida), John Cornyn (R-Texas), and Lindsey Graham (R-South Carolina) are cosponsoring the legislation. Congressmen Mike Lawler (New York-17) and Doug Lamborn (Colorado-05) are introducing bipartisan companion legislation in the House with 27 cosponsors.

“The Palestinian Authority and the Palestine Liberation Organization continue to support terrorism against Israel by providing hundreds of millions of dollars per year in their reprehensible ‘pay-for-slay’ program. Anti-Semitic Palestinian terrorists know they can expect payment as a reward for killing Israelis and Americans–with thousands of Palestinian terrorists tied to October 7 eligible for these terror payments. Our bill will ensure that the PA, PLO and their institutions that reward acts of terrorism are punished,” said Senator Cotton.

“For years, the Palestinian Authority has incentivized brutal attacks against Israelis—and even American citizens—through its horrific 'pay for slay' policies. Strong words and failed negotiations aren’t enough to stop these acts of terror. We need to actually use the authorities at our disposal to impose real economic pain against those who support and facilitate so-called 'martyr payments,' and I am proud to partner with Senator Cotton and our Republican colleagues to do just that,” said Senator Scott.

Text of the bill may be found here.

The PLO and PA Terror Payments Accountability Act would impose sanctions on:

Foreign persons who serve as an employee of the PLO and PA that has facilitated the payments, provided payments themselves, or knowingly provided significant financial, technological, or material support and resources as part of the PLO and PA’s system of compensation supporting acts of terrorism.
Entities that facilitate the PLO and PA system of compensation supporting acts of terrorism including the Commission of Prisoners and Released Prisoners, the Institute for the Care of the Families of the Martyrs and the Wounded, the Palestine National Fund, and National Association of the Families of the Martyrs of Palestine.
Foreign financial institutions that participate in a financial transaction that is part of the PLO and PA’s system of compensation supporting acts of terrorism.

Cotton, Scott, Hill, and colleagues to Uyeda: Review approach to consolidated audit trail

Cotton, Scott, Colleagues introduce bill to sanction Palestinian leadership and institutions that reward terrorism