S. 1149

119 S1149 IS: SEC Whistleblower Reform Act of 2025
 U.S. Senate
 2025-03-26
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 II  119th CONGRESS  1st Session  S. 1149  IN THE SENATE OF THE UNITED STATES   March 26, 2025   Mr. Grassley  (for himself,  Ms. Warren ,  Ms. Collins ,  Mr. Warnock , and  Ms. Cortez Masto ) introduced the following bill; which was read twice and referred to the  Committee on Banking, Housing, and Urban Affairs    A BILL
To amend the Securities Exchange Act of 1934 to further enhance anti-retaliation protections for whistleblowers, and for other purposes.
1.
Short title
This Act may be cited as the   SEC Whistleblower Reform Act of 2025  .
2.
Whistleblower protections for internal disclosures
(a)
In general
Section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 ) is amended—
(1)
in subsection (a)(6)—
(A)
by striking  The term  and inserting the following:
(A)
In general
The term
 ; and
(B)
by adding at the end the following:
(B)
Special rule
Solely for the purposes of subsection (h)(1), the term  whistleblower  includes any individual who takes, or 2 or more individuals acting jointly who take, an action described in subsection (h)(1)(A), that the individual or 2 or more individuals reasonably believe relates to a violation of any law, rule, or regulation subject to the jurisdiction of the Commission, the Public Company Accounting Oversight Board, the Municipal Securities Rulemaking Board, or a self-regulatory organization.
 ; and
(2)
in subsection (h)(1)—
(A)
in subparagraph (A)—
(i)
in the matter preceding clause (i), by inserting  or post-employment  after  of employment ;
(ii)
in clause (i), by inserting  , in writing or orally if the oral report is documented,  after  to the Commission ;
(iii)
in clause (ii), by striking  or  at the end;
(iv)
in clause (iii), by striking the period at the end and inserting  ; or ; and
(v)
by adding at the end the following:
(iv)
in providing information regarding any conduct that the whistleblower reasonably believes constitutes a violation of any law, rule, or regulation subject to the jurisdiction of the Commission to—
(I)
a person with supervisory authority over the whistleblower at the employer of the whistleblower, if that employer is an entity registered with, or required to be registered with, or otherwise subject to the jurisdiction of, the Commission, the Public Company Accounting Oversight Board, a self-regulatory organization, or a State securities commission or office performing like functions; or
(II)
another individual working for the employer described in subclause (I) who the whistleblower reasonably believes has the authority to—
(aa)
investigate, discover, or terminate the misconduct; or
(bb)
take any other action to address the misconduct.
 ; and
(B)
in subparagraph (B), by adding at the end the following:
(iv)
Jury trial
A person against which an action is brought under this subsection shall be entitled to a jury trial.
 .
(b)
Applicability
The amendments made by subsection (a) shall apply to any claim involving a violation of section 21F(h)(1) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6(h)(1) ), including a claim in an enforcement action or proceeding brought by the Securities and Exchange Commission, that is—
(1)
pending in any appropriate judicial or administrative forum, as of the date of enactment of this Act; or
(2)
filed after the date of enactment of this Act.
3.
Prompt payment of awards
Section 21F(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6(b) ) is amended by adding at the end the following:
(3)
Timely processing of claims
(A)
Initial disposition
(i)
In general
Except as provided in subparagraph (B), the Commission shall make an initial disposition with respect to a claim submitted by a whistleblower for an award under this section (referred to in this paragraph as an  award claim ) not later than the later of—
(I)
the date that is 1 year after the deadline established by the Commission, by rule, for the whistleblower to file the award claim; or
(II)
the date that is 1 year after the final resolution of all litigation, including any appeals, concerning the covered action or related action.
(ii)
Multiple actions
If an award claim involves 1 or more related actions, the requirement under clause (i) shall apply with respect to the latest deadline with respect to the actions.
(B)
Exceptions
(i)
Initial extension
If the Director of the Division of Enforcement of the Commission (referred to in this paragraph as the  Director ), or the designee of the Director, determines that an award claim is sufficiently complex or involves more than 1 whistleblower, or if other good cause exists such that the Commission cannot reasonably satisfy the requirements under subparagraph (A), as determined by the Director or the designee, as applicable, the Director or the designee, after providing notice to the Chairman of the Commission (referred to in this paragraph as the  Chairman ), may extend the deadline with respect to the satisfaction of those requirements by not more than 180 days.
(ii)
Additional extensions
If, after providing an extension under clause (i), the Director, or the designee of the Director, determines that good cause exists such that the Commission cannot reasonably satisfy the requirement under subparagraph (A), the Director or the designee of the Director, may extend the deadline described in clause (i) as needed for 1 or more additional successive 180-day periods only after providing notice to and receiving approval from the Commission.
(iii)
Notice to whistleblower required
If the Director, or the designee of the Director, exercises authority under clause (i) or (ii), the Director or the designee, as applicable, shall submit to the whistleblower who filed the award claim that is subject to that action by the Director or the designee a written notification of that action.
(C)
Applicability
This paragraph shall apply only to an award claim that the Director of the designee of the Director determines is timely submitted under a deadline established by the Commission after the date of enactment of this paragraph.
 .
4.
Nonenforceability of certain provisions
(a)
In general
Section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 ) is amended by adding at the end the following:
(k)
Nonenforceability of certain provisions waiving rights and remedies or requiring arbitration
(1)
Waiver of rights and remedies
The rights and remedies provided in this section may not be waived by any agreement, policy form, or condition of employment, including by a predispute arbitration agreement.
(2)
Predispute arbitration agreement
No predispute arbitration agreement shall be valid or enforceable if the agreement requires the arbitration of a dispute arising under this section.
 .
(b)
Applicability
Subsection (k) of section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 ), as added by subsection (a), shall apply with respect to any action that is filed on or after, or that is pending as of, the date of enactment of this Act.
5.
Rulemaking authority
The Securities and Exchange Commission may issue any rules that are necessary or appropriate to carry out this Act consistent with the purposes of section 21F of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–6 ), as amended by this Act.