Representative Barry Loudermilk, US Representative for Georgia's 11th District | Official website
Representative Barry Loudermilk, US Representative for Georgia's 11th District | Official website
Rep. Barry Loudermilk of Georgia has reintroduced the Protecting Investors’ Personally Identifiable Information Act in the 119th Congress. This legislation aims to restrict the Securities and Exchange Commission (SEC) from automatically collecting investors' personal financial information, citing concerns over cybersecurity risks.
Loudermilk stated, "The SEC’s collection of personal financial information through the Consolidated Audit Trail is unconstitutional and entirely unnecessary; and it exposes American investors to serious cybersecurity risks from foreign adversaries and criminal hackers." He emphasized that the bill would limit the SEC's ability to request data only for investigations or enforcement of federal securities law violations. Loudermilk also acknowledged Senator John Kennedy for introducing a companion bill in the Senate.
Rep. Ann Wagner expressed support for making these protections permanent, noting, “We must make this protection permanent and ensure the privacy of our fellow Americans."
Senator John Kennedy introduced Senate Bill S. 658 as a counterpart to Loudermilk's House proposal. Kennedy remarked on potential threats, stating, “Americans assume their private information is secure when they invest money in the U.S. stock market... My bill would protect American investors from foreign enemies and bad actors by preventing the SEC from collecting personal information it doesn’t need."
Chris Iacovella, President & CEO of the American Securities Association, voiced concerns about potential security breaches affecting investors due to current SEC practices: “The SEC’s national registry makes every American investor and retirement saver’s personal and financial information an easy target for Russian and Chinese hackers.”
Kenneth E. Bentsen Jr., President & CEO of the Securities Industry and Financial Markets Association (SIFMA), commended both Loudermilk and Kennedy for their legislative efforts. He noted that SIFMA has long advocated alternatives to data collection that address enforcement needs without compromising investor privacy.
The proposed legislation aligns with recent exemptions provided by the SEC regarding reporting requirements under its Consolidated Audit Trail system.
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