Critics argue that the SEC’s new Consolidated Audit Trail (CAT) database is unduly affecting blockchain users.
Established under SEC Rule 613, the CAT was created to enhance regulatory oversight of securities markets, aggregating extensive trading data from U.S. exchanges, FINRA members, broker-dealers, and others.
This database has become one of the largest of its kind, designed to capture nearly all trading activity in the U.S.
The National Center for Public Policy Research, a conservative think tank, has already sued the SEC, claiming the CAT is unconstitutional. Their lawsuit describes the database as an unprecedented and intrusive collection of personal financial data by the government.
The Blockchain Association (BA) and the DeFi Education Fund (DEF) have also voiced concerns. They argue that although Rule 613 does not explicitly address cryptocurrencies, the SEC’s interpretation could extend reporting requirements to crypto firms.
The BA and DEF contend that this could lead to blockchains being transformed into extensive, searchable records of personal financial data, accessible without a warrant.
In addition to these concerns, Citadel Securities and the American Securities Association are also challenging Rule 613 in court.
Tensions surrounding the Ripple vs. SEC lawsuit are intensifying as discussions about a potential appeal gain traction.
BNY Mellon, the largest custodian bank in the U.S., has reportedly secured an exemption from the SEC’s Accounting Bulletin 121 for its institutional crypto custody operations.
Charles Hoskinson, co-founder of Cardano and Ethereum, has raised concerns about how former President Donald Trump and Vice President Kamala Harris approach cryptocurrency policy.
The Bank of Canada has announced that it is winding down its efforts on retail central bank digital currency (CBDC), as per an update on its website.