Advancing American Freedom led a coalition of 55 other amici in filing an amicus brief in Davidson v. Atkins urging the Western District of Texas to deny the Securities and Exchange Commission’s (SEC) request to delay its consideration of the Consolidated Audit Trail (CAT) for another six months. In January, the court granted the SEC's request to put off considering the case for six months while the agency considered what to do with the CAT. Now, as the previous delay is about to expire, the SEC is requesting yet another delay.
The CAT is a massive data collection program established by the SEC without congressional authorization or appropriation. The CAT collects and stores in a government database personal information of the buyer and seller in every stock sale in the United States.
Congress did not authorize the SEC to create the CAT, a costly program that violates the Fourth Amendment. Even if the CAT were congressionally authorized, it is not a necessary and proper exercise of Congress’s commerce power.
“The SEC has requested delay after delay to avoid review of CAT. While delays cost the Government nothing, delays for the American people can mean missed opportunities, harm to privacy and liberty, and irreparable injustice,” said AAF General Counsel J. Marc Wheat. “The CAT’s abuse of the Constitution like a scratching post has persisted for an intolerable length of time. The Court should deny the SEC’s motion to Stay.”