SEC Lawsuit Targets US Stock Market Investors for Data Collection

A new lawsuit has been filed against the U.S. Securities and Exchange Commission (SEC), alleging that the agency has been illegally tracking the data of Americans who have invested in the stock market. The lawsuit, brought forth by the New Civil Liberties Alliance in Texas, claims that the SEC has been collecting data through the “Consolidated Audit Trail” program (CAT) in an unconstitutional manner.

The SEC is accused of storing and tracking data that includes “trade information on every investor’s trades from inception to completion,” which the lawsuit argues violates the Fourth Amendment. Peggy Little, NCLA senior litigation counsel, expressed concerns about the SEC’s actions, stating that the agency is seizing financial data from all Americans who trade in the American exchanges without proper Congressional authority.

The CAT program, approved in 2016, allows the SEC and stock exchanges to trace every order for a nationally-traded stock from origination to execution. Despite a recent budget approval of $200 million for the program, the lawsuit claims that modern surveillance tools enable mass tracking of individuals’ financial activities without requiring additional time or resources.

The lawsuit highlights the potential dangers of powerful computer algorithms processing personal financial information, raising concerns about privacy and the security of Americans’ savings and investments. The case brings to light the ongoing debate surrounding government surveillance and the protection of individual rights in the digital age.