Is the MSRB Unconstitutional? — SEC Roundup

Welcome to SEC Roundup, a bimonthly video series by former Securities and Exchange Commission senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Choice Advocates Network.

The American Securities Association has filed a petition in the 11th Circuit, challenging the constitutionality of the Municipal Securities Rulemaking Board.

In this episode, ICAN co-founder Nick Morgan and guest host Sarah Concannon, a former senior SEC attorney and Quinn Emanuel partner, sit down with ASA CEO Chris Iacovella to discuss the case and its broader implications.

The ASA’s lawsuit argues that the MSRB, a little-known but powerful regulator of municipal securities, operates as a quasi-governmental entity without proper oversight, raising serious constitutional concerns.

The discussion delves into the MSRB’s unique status as a self-regulatory organization with SEC oversight, the impact of the SEC’s decision to accelerate trade reporting timelines from 15 minutes to 1 minute, and why ASA believes the MSRB’s structure and funding model violate constitutional principles.

With growing scrutiny over the role of SROs and their enforcement powers, this case could reshape the landscape of securities regulation. Tune in for expert analysis on the constitutional questions at play and what’s next for the ASA’s challenge.