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.
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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.