S.658 - Protecting Investors’ Personally Identifiable Information Act (119th Congress)
Summary
S.658, the "Protecting Investors' Personally Identifiable Information Act," aims to prevent the Securities and Exchange Commission (SEC) from mandating the collection of personally identifiable information (PII) under consolidated audit trail (CAT) reporting requirements. The bill defines PII as information that can distinguish or trace an individual's identity, such as name, address, or Social Security number. It generally prohibits the SEC from requiring the provision of PII but includes an exception for investigations related to violations of federal securities laws or enforcement actions.
Expected Effects
If enacted, this bill would limit the SEC's ability to collect PII as part of its market surveillance efforts. This could reduce the risk of data breaches and protect investors' privacy. However, it might also hinder the SEC's ability to effectively investigate and prosecute securities fraud.
Potential Benefits
- Enhanced protection of investors' personal data from potential breaches.
- Reduced risk of identity theft and related harms to individuals.
- Increased investor confidence in the security of their information.
- Limits government overreach in data collection.
- Promotes a balance between regulatory oversight and individual privacy.
Most Benefited Areas:
Potential Disadvantages
- Potential hindrance to the SEC's ability to detect and prosecute securities fraud effectively.
- Increased difficulty in identifying and tracking illicit trading activities.
- Possible delays in investigations due to the need for specific requests for PII.
- May create loopholes for individuals seeking to conceal illegal activities.
- Could lead to less comprehensive market surveillance.
Constitutional Alignment
The bill aligns with constitutional principles related to privacy and the protection of individual liberties, although these are not explicitly enumerated in the Constitution but are often inferred from the Fourth Amendment's protection against unreasonable searches and seizures. The bill also respects the balance of power by allowing the SEC to request PII under specific circumstances related to law enforcement, ensuring that the government can still fulfill its duty to regulate securities markets and protect investors. The enumerated power of Congress to regulate commerce allows for the delegation of authority to the SEC, but this bill seeks to place limits on that authority to protect individual privacy.
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).