Mass. Secretary of Commonwealth Galvin issues warning that new legislation could leave investors vulnerable to fraud, calls on Senate to act

Massachusetts Secretary of the Commonwealth William Galvin has issued a call to Congress to vote down the Responsible Financial Innovation Act of 2025. In a letter to the Senate Committee on Banking, Housing, and Urban Affairs Chair Tim Scott, Republican from South Carolina, and Ranking Member Elizabeth Warren, a fellow Massachusetts Democrat, Galvin says the bill would “restrict a state’s ability to protect investors from fraud or punish bad actors.” His missive to federal lawmakers claims that the legislation would open a “a regulatory ‘black hole’”, and “would allow retail investors to be snared in small offering fraud.” Galvin, who has served in his role since 1995, says Congress must amend the bill to address the exemption of penny stocks from state regulation and clear up state oversight of assets including real estate. He explained his concerns with the bill to WAMC.