ASA Applauds Unanimous 11th Circuit Court of Appeals Ruling to Strike Down CAT Funding Model

WASHINGTON – The American Securities Association (ASA) today applauded a unanimous decision in the 11th Circuit Court of Appeals to strike down the Consolidated Audit Trail's (CAT) funding model. 

"Today’s unanimous ruling in the 11th Circuit Court of Appeals prevents a tax hike on every American investor who buys or sells a share of stock," said ASA President and CEO Chris Iacovella. "We look forward to working with Chairman Atkins and the SEC on the future of the CAT, its funding model, and ending the wrongful collection of the personal and financial information of every American investor."

In September of 2024, ASA and Citadel Securities LLC filed a motion for stay and injunction in the 11th Circuit Court of Appeals to prevent the U.S. Securities and Exchange Commission (SEC) and self-regulatory organizations (SROs) from moving forward with the CAT's massive tax increase on every American investor while their challenge to the CAT’s legality is pending.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.