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  • Writer's pictureASA Newsroom

ASA Statement Ahead of Senate Banking Committee Hearing with SEC Chair Gensler

WASHINGTON, D.C. – The American Securities Association (ASA) released the following statement from President & CEO Chris Iacovella ahead of U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s testimony before the Senate Banking, Housing, and Urban Affairs Committee:

“The SEC’s unprecedented regulatory change, without any mandate, to enact so many new rules threaten market liquidity, market integrity, and the savings of America’s working families. The rulemaking process is being rushed, done without substantive economic analysis, and in many cases, without any statutory authority,” said ASA President & CEO Chris Iacovella. “We hope the Committee questions Chair Gensler about his attack on America’s investors, from the invasion of their privacy by the CAT database to a recently adopted new tax on their securities in their portfolio. While we understand some acted in bad faith with respect to “off-channel” communications, the overwhelming majority of market participants did not, so we question the use of the SEC’s resources to conduct a sweep and impose fines for stop-sign like violations on the rest of the market, especially since it was the industry, not the SEC that adapted to keep the market functioning during the COVID panic.”

Consolidated Audit Trail (CAT): ASA again raises concerns about the SEC’s collection of personal and financial information (PII) within the Consolidated Audit Trail. ASA has been at the forefront of advocacy in the industry and Members of Congress, to remove retail investor PII from the CAT. We thank U.S. Senator John Kennedy (R-LA) and Congressman Barry Loudermilk (R-GA) for introducing the Protecting Investors’ Personally Identifiable Information Act.

Predictive Data Analytics: ASA believes it’s critical to increase investor protection and the safety and soundness of U.S. capital markets. Yet, the Commission’s Predictive Data Analytics Proposal is outright hostile to the use of technology. ASA believes the SEC’s definition of what is a “covered technology” is likely to operate as a ban on the use of technology, harming competition in the markets and investors. Additionally, the Commission lacks statutory authority to adopt these rules.

Cumulative Impact of Rule Changes: ASA has significant concerns with the SEC’s “fast-tracking” of its agenda, limiting public comment periods and shortcutting economic analysis of rules as required by the Administrative Procedure Act. ASA President & CEO Chris Iacovella penned an op-ed published highlighting The True Cost of the SEC’s Regulatory Overreach.

In April 2023, ASA sent a letter to the full House Financial Services Committee in advance of SEC Chairman Gary Gensler’s testimony on the Agency’s regulatory developments, rulemakings, and activities.


About the American Securities Association

American Securities Association, based in Washington, DC, 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.


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