Bill · S. 2920· Senate(119-S-2920)
Stronger Enforcement of Civil Penalties Act of 2025
- Introduced
- 9/19/2025
- Last activity
- 9/19/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S6793-6794)
- Sponsored by
- John Reed
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Stronger Enforcement of Civil Penalties Act of 2025 aims to increase money penalties for violations of Federal securities laws. It updates penalty amounts across several major acts, including the Securities Act of 1933 and the Securities Exchange Act of 1934. The bill introduces a "third tier" for certain violations involving fraud or significant losses. Additionally, it establishes a "fourth tier" of penalties specifically for recidivists who have been previously convicted or sanctioned. Finally, it addresses violations of injunctions or bars by treating them as separate offenses.
Yes· 3 of 5
Does this give people more protection from unfair business practices?+7
The bill increases financial penalties for securities fraud and market manipulation, which enhances the protection of investors.
Would retired people be better off under this?+5
Enhanced enforcement against securities fraud helps protect the stability of retirement funds and investments.
Would households on low incomes be better off under this?+4
Stronger penalties for securities fraud help protect smaller investors from significant financial losses.
The opposite· 3 of 5
Would business owners be better off under this?-5
The bill increases the severity and frequency of fines for regulatory violations and failure to comply with injunctions.
Would people with substantial wealth be better off under this?-3
Increased penalties for securities law violations may disproportionately affect those managing large investment portfolios.
Would the very wealthiest people be better off under this?-3
The higher penalties and the new fourth tier for recidivists increase the financial risks for those involved in high-level securities transactions.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Penalties for Fraudulent Acts: The bill increases the maximum penalty for third tier acts or omissions which involve fraud, deceit, or manipulation. These penalties can be up to $1,000,000 for a natural person or $10,000,000 for other persons, or three times the gross gain or the amount of losses incurred by victims (Section 2, subsections a, b, c, and d).
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Stricter Penalties for Repeat Offenders: A "fourth tier" of penalties is established for those who have been criminally convicted for securities fraud or subject to specific Commission actions within a 5-year period. This tier allows for penalties up to three times the otherwise applicable amount (Section 3).
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Enhanced Enforcement of Injunctions: The bill stipulates that each separate violation of a Federal court injunction or a Commission bar is a separate offense. In cases of continuing failure to comply, each day of failure is considered a separate offense (Section 4).
Potential Negative Impacts for People
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Increased Financial Burden for Violations: The bill increases various money penalty amounts across multiple acts, such as raising certain amounts from $7,500 to $10,000 and $75,000 to $100,000 (Section 2, subsection a, subparagraph 1, A).
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Heightened Penalties for Continued Non-compliance: For individuals or entities failing to comply with an injunction or order, every single day of that failure is deemed a separate offense, which could lead to cumulative penalties (Section 4).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Consumer Protection+7
- Demographic And Interest Groups
- Good For Retirees+5Good For Low Income Households+4Good For Middle Class Households+4Good For Business Owners-5Good For Billionaires-3Good For High Net Worth Individuals-3Good For Ultra High Net Worth Individuals-3Good For High Income Households-2
- Governance And Ideology
- Improves Government Transparency+3
- 9/19/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S6793-6794)
- 1 Cosponsor added.
- Introduced in Senate
Chuck GrassleyRepublican · Iowa