The New Civil Liberties Alliance (NCLA) has initiated a legal challenge against the Securities and Exchange Commission (SEC) concerning the implementation methods of the Consolidated Audit Trail (CAT). This lawsuit arises from NCLA’s belief that the SEC has overstepped its bounds and infringed upon SEC Tech Orders in the process.
The CAT (Consolidated Audit Trail), described as the largest compulsory collection of financial data in US history, is drawing criticism for its unclear monitoring capabilities. The National Center for Law and Economic Studies (NCLA) argues that the Securities and Exchange Commission (SEC) lacks the power to demand such extensive information from brokers, exchanges, and trading platforms beyond making it permanently available to SEC and private regulators.
The NCLA’s lawsuit claims that the SEC has infringed upon several constitutional rights. Specifically, it contends that the Fourth Amendment’s protection against unreasonable searches and seizures, the Fifth Amendment’s guarantee of due process, and the First Amendment’s provisions for freedom of association and expression have been violated. Additionally, there are concerns that the SEC has neglected to adhere to the Administrative Procedure Act.
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2024-04-17 03:16