American Securities Association sues SEC
Date: 2024-06-07 Author: Oliver Abernathy Categories: IN WORLD
The American Securities Association (ASA) has initiated litigation against the US Securities and Exchange Commission (SEC). The lawsuit stems from the ASA's allegation that the SEC is failing to meet its obligations under federal public information laws. The case involves $3 billion in fines imposed on a number of large financial companies.
Cause of action
The ASA filed the lawsuit amid fines the SEC issued to 16 different companies. Among these companies are such major financial market players as:
- JPMorgan Chase
- Credit Suisse
- Wells Fargo
- Goldman Sachs
- Morgan Stanley and others.
Reason for fines
The SEC imposed administrative penalties on these companies for failing to properly record work correspondence between the firms' employees. The regulator found that employees used third-party communication tools, which violated internal accounting rules.
After imposing fines, the SEC prohibited its employees from using instant messengers that were not officially approved by the agency. According to the regulator, such means of communication can cause data leaks and compromise of confidential information.
ASA Requirements
The ASA contends that the SEC rejected the association's request for additional enforcement data. The organization believes that in this way the SEC violated its obligations under federal public information laws.
“There is no rhyme or reason to the SEC's imposition of these fines, and the Commission has provided no explanation for its decisions,” the ASA said in a statement.
SEC officials responded that sharing such data jeopardizes ongoing and planned enforcement actions. For this reason, the agency allegedly cannot provide access to documentation related to these cases.
Impact on the cryptocurrency industry
This is not the first time the SEC has faced accusations of lack of transparency and heavy regulation. Coinbase recently accused the SEC of intending to destroy the cryptocurrency industry. These developments highlight the growing tension between financial regulators and market participants.
The ASA's lawsuit against the SEC highlights the importance of transparency and compliance with public information laws in financial regulation. Further developments in this case will have a significant impact on the relationship between financial regulators and market participants, as well as on the perception of regulation in general.
