{"id":334,"date":"2026-06-08T16:38:26","date_gmt":"2026-06-08T16:38:26","guid":{"rendered":"https:\/\/propertytransitionmedia.com\/?p=334"},"modified":"2026-06-08T16:38:26","modified_gmt":"2026-06-08T16:38:26","slug":"the-secs-mass-surveillance-of-investors-transactions-violates-first-amendment","status":"publish","type":"post","link":"https:\/\/propertytransitionmedia.com\/?p=334","title":{"rendered":"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment"},"content":{"rendered":"
\n

The First Amendment forbids the government from forcing you to disclose the groups or organizations that you support. That is because the First Amendment guarantees our right to associate with others, and associational privacy is fundamental to that freedom. Nevertheless, in complete disregard for these associational rights, the Securities and Exchange Commission currently requires investors to disclose the businesses they support financially. No government agency has the authority to compel Americans to disclose the companies in which they invest.\u00a0\u00a0<\/p>\n

Read more You Should Control Your Child\u2019s Phone \u2014 Not Silicon Valley<\/a><\/p>\n

Yet for several years, the SEC has done exactly that through a surveillance program called the Consolidated Audit Trail (CAT). The CAT is \u201cthe world\u2019s largest collection of retail investor financial information ever assembled.\u201d Since its inception, the program has allowed the SEC to monitor trillions<\/em> of securities transactions. And the SEC maintains details about those transactions in a government database it searches at will.<\/p>\n

The CAT\u2019s scale (and the SEC\u2019s apparent disdain for the Constitution\u2019s guarantees) are shocking. But for decades, regulators and the courts have ignored the Constitution\u2019s requirements in the context of financial regulation and economic liberty.<\/p>\n

It doesn\u2019t have to be this way. Courts or the SEC have the authority to end the surveillance \u2014 and should do so because it is both illegal and unconstitutional, as our firm, the New Civil Liberties Alliance, has argued in our lawsuit against the CAT. For example, Congress never authorized the program nor appropriated money for it. And the warrantless surveillance violates the Fourth Amendment.<\/p>\n

But equally appalling is the SEC\u2019s abridgment of the First Amendment\u2019s guarantee of associational freedom. The Supreme Court has long held that the First Amendment prevents the government from collecting information about the entities Americans associate with or financially support.\u00a0<\/p>\n

During the Civil Rights era, Alabama sought to force the NAACP to provide the state with its membership list. However, in NAACP v. Alabama<\/em> (1958), the Supreme Court held that Alabama\u2019s demand violated the First Amendment. The Court explained that the \u201cinviolability of privacy in group association may in many circumstances be indispensable to preservation of freedom of association.\u201d In other words, the government\u2019s forced disclosure of one\u2019s associations can unlawfully limit expression protected by the First Amendment.\u00a0<\/p>\n

Similarly, the Supreme Court held in Americans for Prosperity v. Bonta<\/em> (2021) that California could not require a non-profit to disclose its donor lists to the state. Citing NAACP<\/em>, the Court again explained that forced disclosure of an entity\u2019s supporters created a risk of limiting expression \u201cin violation of the First Amendment.\u201d\u00a0<\/p>\n

The same principles apply here. The First Amendment guarantees Americans the freedom to support \u2014 or oppose \u2014 a variety of businesses and other entities through their investment decisions.\u00a0<\/p>\n

Read more Since SCOTUS Let Truck Drivers Who Can\u2019t Read English Kill Americans, Trump Needs To Take Action<\/a><\/p>\n

In today\u2019s polarized political environment, the government-mandated disclosure of investors\u2019 financial decisions and relationships with businesses raises the same chilling concerns present in cases like NAACP<\/em> and Americans for Prosperity<\/em>. In fact, SEC Commissioner Hester Peirce has warned of that possibility, noting that the SEC could use CAT data \u201cto stalk personal or political enemies.\u201d In her view, given the \u201cexpressive value\u201d of various trading decisions, \u201cuntargeted surveillance of financial transactions raises the same types of civil liberty concerns as other mass surveillance programs.\u201d\u00a0<\/p>\n

The potential for government abuse undergirds the Supreme Court\u2019s associational privacy decisions. And the risk of partisan targeting of individuals is arguably even higher today. In NAACP <\/em>and Americans for Prosperity<\/em>, the government sought to force disclosure of one organization and its supporters\u2019 association. Today, the SEC is forcing all <\/em>investors to disclose countless <\/em>associations.\u00a0<\/p>\n

Worse yet, details of those relationships are stored in a database subject to government search at any time. Due to technological advances, the government cannot ensure that these sensitive details will not be the subject of a hack or data breach. As the Supreme Court unanimously recognized last month in First Choice Women\u2019s Resource Centers, Inc. v. Davenport<\/em>, sensitive information disclosed only to the government can \u201cwind up in the public domain due to a hack or leak.\u201d For these reasons, it is impossible to reconcile the CAT with the First Amendment\u2019s guarantee of associational freedom.<\/p>\n

That investment associations have an economic component does not render the association outside the bounds of the First Amendment. Americans for Prosperity<\/em> explained that \u201c\u2018it is immaterial\u2019\u201d to the level of scrutiny \u201c\u2018whether the beliefs sought to be advanced by association pertain to political, economic, religious, or cultural matters.\u2019 Regardless of the type of association, compelled disclosure requirements\u201d receive heightened scrutiny under the First Amendment.<\/p>\n

Perhaps recognizing the weight of this constitutional objection and others, the SEC has promised a \u201ccomprehensive review\u201d of the CAT. To that end, the SEC is soliciting public comments about its surveillance scheme until June 15, 2026.\u00a0<\/p>\n

The SEC, however, seems unlikely to voluntarily shutter the CAT on its own. But public pushback could cause the SEC to change course. And so, Americans concerned about their associational privacy should pressure the SEC to end this unlawful mass surveillance. Anything less than stopping the SEC\u2019s ubiquitous surveillance of investors guarantees continued, irreparable violation of investors\u2019 First Amendment freedoms.\u00a0<\/p>\n

Read more How The University Of California Became A Stooge For China\u2019s Anti-America Warfare<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Anything less than stopping the SEC\u2019s surveillance of investors guarantees continued violation of investors\u2019 First Amendment freedoms.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":333,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[1035,521,413,1305,993,1306,1307,135],"class_list":["post-334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-law","tag-alabama","tag-california","tag-first-amendment","tag-fourth-amendment","tag-naacp","tag-naacp-v-alabama","tag-securities-and-exchange-commission","tag-supreme-court"],"yoast_head":"\nThe SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment - Property Transition Media<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/propertytransitionmedia.com\/?p=334\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment - Property Transition Media\" \/>\n<meta property=\"og:description\" content=\"Anything less than stopping the SEC\u2019s surveillance of investors guarantees continued violation of investors\u2019 First Amendment freedoms.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/propertytransitionmedia.com\/?p=334\" \/>\n<meta property=\"og:site_name\" content=\"Property Transition Media\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-08T16:38:26+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/#\\\/schema\\\/person\\\/318e38080556664c79a2d76a6b0894b2\"},\"headline\":\"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment\",\"datePublished\":\"2026-06-08T16:38:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334\"},\"wordCount\":908,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/propertytransitionmedia.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg\",\"keywords\":[\"Alabama\",\"California\",\"First Amendment\",\"Fourth Amendment\",\"NAACP\",\"NAACP v. Alabama\",\"Securities and Exchange Commission\",\"Supreme Court\"],\"articleSection\":[\"Law\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334\",\"url\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334\",\"name\":\"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment - Property Transition Media\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/propertytransitionmedia.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg\",\"datePublished\":\"2026-06-08T16:38:26+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/#\\\/schema\\\/person\\\/318e38080556664c79a2d76a6b0894b2\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#primaryimage\",\"url\":\"https:\\\/\\\/propertytransitionmedia.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg\",\"contentUrl\":\"https:\\\/\\\/propertytransitionmedia.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg\",\"width\":2560,\"height\":1707},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?p=334#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/propertytransitionmedia.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/#website\",\"url\":\"https:\\\/\\\/propertytransitionmedia.com\\\/\",\"name\":\"Property Transition Media\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/propertytransitionmedia.com\\\/#\\\/schema\\\/person\\\/318e38080556664c79a2d76a6b0894b2\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/propertytransitionmedia.com\"],\"url\":\"https:\\\/\\\/propertytransitionmedia.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment - Property Transition Media","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/propertytransitionmedia.com\/?p=334","og_locale":"en_US","og_type":"article","og_title":"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment - Property Transition Media","og_description":"Anything less than stopping the SEC\u2019s surveillance of investors guarantees continued violation of investors\u2019 First Amendment freedoms.\u00a0","og_url":"https:\/\/propertytransitionmedia.com\/?p=334","og_site_name":"Property Transition Media","article_published_time":"2026-06-08T16:38:26+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/propertytransitionmedia.com\/?p=334#article","isPartOf":{"@id":"https:\/\/propertytransitionmedia.com\/?p=334"},"author":{"name":"admin","@id":"https:\/\/propertytransitionmedia.com\/#\/schema\/person\/318e38080556664c79a2d76a6b0894b2"},"headline":"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment","datePublished":"2026-06-08T16:38:26+00:00","mainEntityOfPage":{"@id":"https:\/\/propertytransitionmedia.com\/?p=334"},"wordCount":908,"commentCount":0,"image":{"@id":"https:\/\/propertytransitionmedia.com\/?p=334#primaryimage"},"thumbnailUrl":"https:\/\/propertytransitionmedia.com\/wp-content\/uploads\/2026\/06\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg","keywords":["Alabama","California","First Amendment","Fourth Amendment","NAACP","NAACP v. Alabama","Securities and Exchange Commission","Supreme Court"],"articleSection":["Law"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/propertytransitionmedia.com\/?p=334#respond"]}]},{"@type":"WebPage","@id":"https:\/\/propertytransitionmedia.com\/?p=334","url":"https:\/\/propertytransitionmedia.com\/?p=334","name":"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment - Property Transition Media","isPartOf":{"@id":"https:\/\/propertytransitionmedia.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/propertytransitionmedia.com\/?p=334#primaryimage"},"image":{"@id":"https:\/\/propertytransitionmedia.com\/?p=334#primaryimage"},"thumbnailUrl":"https:\/\/propertytransitionmedia.com\/wp-content\/uploads\/2026\/06\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg","datePublished":"2026-06-08T16:38:26+00:00","author":{"@id":"https:\/\/propertytransitionmedia.com\/#\/schema\/person\/318e38080556664c79a2d76a6b0894b2"},"breadcrumb":{"@id":"https:\/\/propertytransitionmedia.com\/?p=334#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/propertytransitionmedia.com\/?p=334"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/propertytransitionmedia.com\/?p=334#primaryimage","url":"https:\/\/propertytransitionmedia.com\/wp-content\/uploads\/2026\/06\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg","contentUrl":"https:\/\/propertytransitionmedia.com\/wp-content\/uploads\/2026\/06\/5673cc2e24c080b1ef0f9cbc1716fa62.jpg","width":2560,"height":1707},{"@type":"BreadcrumbList","@id":"https:\/\/propertytransitionmedia.com\/?p=334#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/propertytransitionmedia.com\/"},{"@type":"ListItem","position":2,"name":"The SEC’s Mass Surveillance Of Investors\u2019 Transactions Violates First Amendment"}]},{"@type":"WebSite","@id":"https:\/\/propertytransitionmedia.com\/#website","url":"https:\/\/propertytransitionmedia.com\/","name":"Property Transition Media","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/propertytransitionmedia.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/propertytransitionmedia.com\/#\/schema\/person\/318e38080556664c79a2d76a6b0894b2","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/propertytransitionmedia.com"],"url":"https:\/\/propertytransitionmedia.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=334"}],"version-history":[{"count":0,"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=\/wp\/v2\/posts\/334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=\/wp\/v2\/media\/333"}],"wp:attachment":[{"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertytransitionmedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}