H.R. 216 — SEC Act of 2025

This section amends civil penalty provisions in four federal securities statutes—the Securities Act of 1933 (sections 8A(g) and 20(d)), Securities Exchange Act of 1934 (sections 21(d)(3), 21B(a), and 32), Investment Company Act of 1940 (sections 9(d) and 42(e)), and Investment Advisers Act of 1940 (sections 203(i) and 209(e))—to establish that, for purposes of determining the number of violations subject to penalties, separate acts of noncompliance constitute a single violation if they result from (1) a common or substantially overlapping originating cause, (2) the same misstatement or omission, or (3) a continuing failure to comply. (Thus, this limits penalties tied to the per-violation amount (e.g., up to $2.4 million per violation under tier 3 of the Securities Exchange Act's civil penalty framework, adjusted for inflation).)