Bill · H.R. 216· House(119-HR-216)
SEC Act of 2025
- Introduced
- 1/7/2025
- Last activity
- 1/7/2025 — Referred to the House Committee on Financial Services.
- Sponsored by
- Pete Sessions
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Securities Enforcement Clarity Act of 2025, also known as the SEC Act of 2025, changes how violations are counted for penalties. It amends the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisors Act of 1940. Under this bill, multiple acts of noncompliance are treated as a single violation if they come from a common cause, the same mistake or omission, or a continuing failure to comply.
Yes· 3 of 7
Would business owners be better off under this?+5
Directly reduces potential financial liabilities for businesses facing securities regulatory actions.
Does this make it easier to run a small business?+3
Reduces the financial burden of regulatory penalties for smaller firms by consolidating multiple noncompliance acts into single violations.
Would high-income households be better off under this?+2
Likely to benefit those who manage investment funds or companies subject to securities laws.
The opposite
Does this give people more protection from unfair business practices?-4
May reduce accountability for financial entities by lowering the total penalties imposed for multiple acts of wrongdoing.
Does this give the federal government more power?-2
Limits the ability of federal regulators (SEC) to impose multiple penalties for related violations.
Who it would affect, and how
Potential Positive Impacts for People
- Reduced Penalties for Specific Noncompliance: By treating separate acts as a single violation when they share a common cause, the same misstatement, or are part of a continuing failure, the total number of penalties imposed could be lower. This applies to the Securities Act of 1933 (Section 2(a)), Securities Exchange Act of 1934 (Section 2(b)), Investment Company Act of 1940 (Section 2(c)), and Investment Advisors Act of 1940 (Section 2(d)).
Potential Negative Impacts for People
- Lower Accountability for Multiple Acts: Because separate acts of noncompliance can now be counted as a single violation if they result from a common cause, the same omission, or a continuing failure, officials or entities may face fewer penalties for multiple instances of wrongdoing. This change is applied across the Securities Act of 1933 (Section 2(a)), Securities Exchange Act of 1934 (Section 2(b)), Investment Company Act of 1940 (Section 2(c)), and Investment Advisors Act of 1940 (Section 2(d)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Billionaires+2Good For High Income Households+2Good For High Net Worth Individuals+2Good For Ultra High Net Worth Individuals+2
- Economy And Finance
- Improves Small Business Support+3Improves Consumer Protection-4
- Governance And Ideology
- Improves Due Process+2Increases Federal Power-2
- 1/7/2025
- Referred to the House Committee on Financial Services.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.