American Securities Association Sues SEC Over Lack of Transparency
Highlights
- The American Securities Association sued the SEC over lack of transparency.
- The body claims the financial refused to disclose how it arrived at penalties.
- On their part, the SEC pointed to Exception 7(a) as reasons.
The American Securities Association (ASA) has sued the Securities and Exchange Commission (SEC) over its enforcement actions and failure to comply with the Freedom of Information Act. The lawsuit stems from regulatory actions by the Commission with limited information given to stakeholders. At the moment, consumers have criticized the Commission’s lack of disclosure on social media spaces.
AMA Sues The SEC
In a June 6 filing, the Securities Association seeks disclosures from the Commission on previous regulatory actions in which it imposed sanctions. According to court documents, the action is to compel compliance with the Freedom of Information Act.
“In our democratic system, transparency is a two-way street. Federal law also demands transparency from the government. Under the Freedom of Information Act, the public is entitled to documents created by federal agencies so the people can learn about their government’s actions and policies.”
In 2021, the SEC investigated broker-dealer retention of communications on personal devices. Scores of documents were provided to the financial regulator without suspicion of breach of rules. This led to the SEC imposing billions in penalties without explanation on the decision-making process. ASA sought answers regarding how penalties were calculated, and why defaulters were targeted.
They noted that the regulator failed to comply with its obligations citing previous SEC Commissioners’ comments on the penalty regime as a tool to generate end-of-year statistics and not to enhance market integrity and drive investor protection.
Regulator Cites Exception
In response to ASA’s request for details under the Freedom of Information Act, the SEC pointed to Exception 7(a) to the effect that documents may reasonably interfere with ongoing enforcement proceedings. However, ASA seeks documents for settled proceedings which the Commission cannot withhold the requested information.
“And even if the SEC could withhold documents on these grounds, it has fallen woefully short of its high burden to justify the withholding, as it has provided nothing but general, boilerplate statements for refusing to comply with ASA’s FOIA requests,” they added.
Also Read: AI Giants OpenAI and Microsoft Routed By FTC, DOJ On Antitrust Concerns
- XRP to $9? Analysts Tip ‘XRP Is a Buy’ as Price Targets 200% Surge
- CZ Endorses Hyperliquid Rival Aster DEX, Token Rallies 1,500%
- Tom Lee’s BitMine Adds $84M in ETH as Expert Predicts Ethereum Rally to $5K
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
