SEC Act of 2025
Sponsored By: Representative Sessions
Introduced
Summary
This bill would standardize when separate securities law violations count as a single violation for penalties. It sets three tests that decide when related acts can be treated as one for penalty calculations: a common or substantially overlapping cause, the same misstatement or omission, or a continuing failure to comply.
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- Issuers, brokers, dealers, and investment advisers covered by the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940 could have multiple related acts combined into a single violation for penalty purposes.
- Enforcement agencies would apply the same three consolidation criteria across all four statutes, creating a uniform method for counting violations when setting penalties.
- When noncompliance stems from a common origin, the same misstatement, or a continuing failure, the bill treats those occurrences as one violation, which could reduce the number of violations that determine penalties.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Fewer counted violations in SEC cases
If enacted, this would change how penalties are counted in securities cases. Related acts would count as one violation when they share a common cause, the same misstatement or omission, or a continuing failure to comply. It would apply across the Securities Act, Exchange Act, Investment Company Act, and Investment Advisers Act. Issuers, funds, advisers, broker-dealers, exchanges, and their officers could face fewer counted violations. The change would start upon enactment.
Sponsors & CoSponsors
Sponsor
Sessions
TX • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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