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SEC's Clayton Criticized by Both Parties Over Hack Response

  • Senators Crapo and Brown fault regulator over disclosure delay
  • Agency is under attack from ‘nefarious actors,’ chairman says
Jay Clayton speaks during a Senate Appropriations Subcommittee hearing in Washington, D.C., on June 27, 2017.

Jay Clayton speaks during a Senate Appropriations Subcommittee hearing in Washington, D.C., on June 27, 2017.

Photographer: Andrew Harrer/Bloomberg
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U.S. Securities and Exchange Commission Chairman Jay Clayton faced criticism from both sides of the political aisle Tuesday over his agency’s handling of a 2016 cyberattack that may have allowed hackers to profit from trading on nonpublic information.

Senate Banking Committee Chairman Mike Crapo, an Idaho Republican, told Clayton that he was disturbed to learn that the SEC had suffered a breach of the Edgar system for corporate filings in 2016, but didn’t inform the public until last week. Crapo was followed by Senator Sherrod Brown of Ohio, the panel’s top Democrat, who questioned the agency’s ability to hold companies responsible in light of its own failings.