Title II of HR 3978 “removes any such doubt and would prohibit the SEC from compelling the production of source code or similar intellectual property without a subpoena. Generally, the SEC relies on its subpoena authority to obtain such data; this bill only codifies that approach in order to head off the possibility that the SEC could follow the groundwork laid by the CFTC’s proposed approach. Allowing a federal agency, such as the SEC, to more freely collect highly sensitive proprietary trading algorithms without sufficient due process protections will only increase the SEC’s attractiveness as a highly-prized target for cyber intrusions,” the House Republican Policy Committee said in analysis of the bill.
This article was provided by Bloomberg News.