SEC Enforcement Director Andrew Ceresney Testifies Against Bill on Email Privacy

SEC Director of the Division of Enforcement Andrew Ceresney testified that the proposed Email Privacy Act (H.R. 699) poses significant risks to the American public. H.R. 699 amends portions of the Electronic Communications Privacy Act (ECPA).

In his testimony before the House Judiciary Committee, Mr. Ceresney argued that H.R. 699 would impede the ability of the SEC and other civil law enforcement agencies to investigate and uncover financial fraud and other unlawful conduct.

He claimed that H.R. 699 would require government entities to procure criminal warrants when they sought to view the content of emails and other electronic communications from ISPs. But because the SEC and other agencies cannot obtain criminal warrants, he said, they effectively would not be able to gather evidence directly from an ISP regardless of the circumstances. For that reason, he asserted, the SEC would be denied the ability to obtain critical evidence if the bill became law without modifications.

He stated that there are multiple ways to modernize the ECPA to be consistent with the law without impeding the SEC's ability to protect investors. He added that he welcomed discussion on ways to achieve this goal.