SEC Chair Paul S. Atkins said the agency plans a broad overhaul of the Consolidated Audit Trail, including changes to its governance structure, funding sources, and operating model. According to ChainCatcher, Atkins said the SEC has already reduced annual CAT operating costs and eliminated the requirement to report personally identifiable information during his tenure.

The SEC said the system still faces fundamental problems with cost, governance, and funding. On April 16, 2026, it issued a concept release to review CAT and other audit trail systems and data sources used in U.S. securities market oversight, and said it had received hundreds of responses. One key theme was that investors and market participants want the SEC to take a larger role in CAT management and funding.

Atkins said he has asked staff to develop deeper reforms for CAT, including exploring new funding sources such as congressional appropriations and transaction fees under Section 31 of the Securities Exchange Act; drafting a rule proposal that would, if approved, repeal Rule 613 and require exchanges, FINRA, and broker-dealers to continue using existing CAT infrastructure and reporting standards to submit data directly to the SEC or its designated entity; and assessing internal resource needs for a future SEC takeover of CAT governance. The SEC said the transition would require multiple coordinated steps and could continue until the end of 2027.