H.R.1483 - Protecting Investors’ Personally Identifiable Information Act (119th Congress)
Summary
H.R.1483, the "Protecting Investors' Personally Identifiable Information Act," aims to prevent the Securities and Exchange Commission (SEC) from requiring the collection of personally identifiable information (PII) under consolidated audit trail (CAT) reporting requirements. The bill specifically prohibits the SEC from mandating national securities exchanges, associations, or their members to provide PII related to market participants for order or reportable event requirements under specific regulations. The bill defines PII to include data that can identify or trace an individual, such as name, address, date of birth, Social Security number, and IP address.
Expected Effects
If enacted, H.R.1483 would limit the SEC's ability to collect PII through the CAT system. This could reduce the risk of data breaches and identity theft for investors. However, it might also hinder the SEC's ability to effectively monitor and regulate securities markets.
Potential Benefits
- Enhanced Privacy: Protects investors' sensitive personal information from potential misuse or breaches.
- Reduced Identity Theft Risk: Limits the collection of PII, decreasing the likelihood of identity theft.
- Increased Investor Confidence: May encourage more participation in the market by alleviating privacy concerns.
- Compliance Cost Reduction: Could lower compliance costs for exchanges and associations by reducing the burden of collecting and securing PII.
- Focus on Essential Data: Allows the SEC to focus on other relevant data for market oversight.
Most Benefited Areas:
Potential Disadvantages
- Reduced Regulatory Oversight: May impede the SEC's ability to detect and prosecute illegal activities like insider trading and market manipulation.
- Impaired Market Surveillance: Could limit the effectiveness of the consolidated audit trail in providing a comprehensive view of market activity.
- Increased Investigation Complexity: May make it more difficult for the SEC to investigate suspicious trading patterns.
- Potential for Loopholes: Could create opportunities for individuals to conceal illicit activities by obscuring their identities.
- Delayed Response to Market Abuses: May slow down the SEC's response time to market abuses due to limited access to PII.
Constitutional Alignment
The bill aligns with constitutional principles related to privacy and individual liberties, particularly concerning the government's collection and use of personal information. While the Constitution does not explicitly mention data privacy, the Fourth Amendment's protection against unreasonable searches and seizures can be interpreted to extend to the digital realm. By limiting the SEC's ability to collect PII, H.R.1483 aims to safeguard investors' privacy rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).