SEC Whistleblower Reform Act of 2025
SEC Whistleblower Reform Act of 2025
Plain Language Summary
# SEC Whistleblower Reform Act of 2025 — Plain Language Summary **What It Does:** This bill would strengthen protections for people who report securities violations (financial crimes and wrongdoing) to the Securities and Exchange Commission (SEC). Currently, employers cannot retaliate against whistleblowers who report to the SEC. This bill would expand that protection to cover people who report violations to their supervisors or other company officials first, and would also protect reports about violations in areas overseen by accounting oversight boards and other financial regulatory organizations. Additionally, it would give people accused of retaliating against whistleblowers the right to request a jury trial, and would require the SEC to decide on whistleblower award claims within one year. **Who It Affects:** This bill primarily affects employees who report financial crimes and violations, their employers, and companies in the securities and financial services industries.
Whistleblowers could gain stronger legal protections, while companies face clearer rules about not punishing employees who report violations. **Current Status:** The bill is currently in committee (S. 1149 in the Senate) and has not yet been voted on by Congress. It was introduced by Senator Chuck Grassley (R-IA).
CRS Official Summary
SEC Whistleblower Reform Act of 2025This bill expands and revises whistleblower protections applicable to individuals who provide information to the Securities and Exchange Commission (SEC) relating to a violation of securities laws.Under current law, an employer is prohibited from retaliating against these whistleblowers. Under the bill, this prohibition is expanded to include (1) individuals who provide information regarding potential violations to supervisors or other employees in positions of authority; and (2) information relating to violations subject to the jurisdiction of the Public Company Accounting Oversight Board, the Municipal Securities Rulemaking Board, or a self-regulatory organization.Additionally, the bill establishes the right to a jury trial for a person accused of violating whistleblower protection laws.The bill also requires the SEC to make an initial disposition of a whistleblower award claim within the later of (1) one year of the deadline to submit such a claim, or (2) one year after the final resolution of any litigation in the matter.Finally, the bill deems as unenforceable a predispute arbitration agreement regarding a whistleblower action.
Latest Action
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.