Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Senate Banking Committee Ranking Member Elizabeth Warren (D-Mass.) have reintroduced legislation known as the SEC Whistleblower Reform Act of 2025, a bipartisan bill aimed at bolstering protections for whistleblowers who report securities violations.

The legislation seeks to shield whistleblowers from retaliation, ensure timely processing of claims, and prevent the waiver of whistleblower rights through pre-dispute arbitration agreements.

“Patriotic whistleblowers root out waste, fraud and abuse taking place in the shadows, and we should thank them for recovering billions of valuable taxpayer dollars. I’m proud to reintroduce this legislation to increase government accountability by safeguarding the SEC’s Whistleblower Program,” Senator Grassley said.

Senator Catherine Cortez Masto (D-Nev.), another cosponsor, stressed the importance of protecting public servants: “Now more than ever, it’s critical that we protect the brave public servants willing to do what’s right and expose wrongdoing. There is bipartisan agreement that we must strengthen whistleblower protections to ensure they don’t face retaliation for the risks they take.”

Key Provisions of the SEC Whistleblower Reform Act of 2025

The proposed legislation includes several critical measures to strengthen whistleblower protections:

• Protection Against Retaliation: Whistleblowers who report violations to their direct superiors would be protected from retaliation. Currently, they are only protected if they report directly to the SEC or certain officials.

• Timely Claims Processing: The bill ensures that claims and awards are processed in a timely manner, addressing previous years-long backlogs.

• Preservation of Rights: Whistleblowers would be protected from waiving their rights through pre-dispute arbitration agreements.

SEC Whistleblower Program’s Impact

Since its inception under the Dodd-Frank Act in 2010, the SEC Whistleblower Program has proven highly effective, recovering over $6.3 billion in sanctions and returning billions to investors and taxpayers.

In Fiscal Year 2024, the SEC awarded over $255 million to whistleblowers and received over 24,000 whistleblower tips.

Bipartisan Support for the SEC Whistleblower Reform Act of 2025

The SEC Whistleblower Reform Act of 2025, reintroduced with bipartisan support, aims to enhance accountability, protect whistleblowers from retaliation, and expedite claims processing, ensuring the SEC’s Whistleblower Program continues to safeguard investors and promote corporate transparency.

How to Report Securities Fraud to the SEC

To report fraud under the SEC Whistleblower Program:

• Gather Evidence – Collect documents, emails, or records supporting your claim. The SEC values high-quality, original information.
• Submit a Tip – Use the SEC’s Tips, Complaints and Referrals Portal or Form TCR (Tip, Complaint, or Referral). A properly submitted Form TCR is required for a whistleblower award.
• Work with an Attorney – An experienced whistleblower attorney can guide you and protect your rights. Whistleblowers wishing to remain anonymous must be represented by an attorney.
• Stay Updated – The SEC may contact you for additional information or updates on your case. Continued cooperation may maximize award chances.

Determining Whistleblower Awards

The SEC determines award percentages based on several factors:

Factors That May Increase an Award:

• Significance of Information – More valuable information leads to higher awards.
• Assistance Provided – Helping SEC staff decipher transactions or provide key evidence can increase awards.
• Law Enforcement Interest – Reports of ongoing violations harming investors may receive priority.
• Internal Compliance Participation – While not required, internal reporting can increase award percentages.

Factors That May Decrease an Award:

• Unreasonable Reporting Delay – Waiting too long to report a violation may reduce the award.
• Culpability – Whistleblowers involved in misconduct may receive reduced payouts.
• Interference with Internal Reporting Systems – Undermining internal compliance may lower an award.

Maximum Whistleblower Award Presumption

Under the 2020 Whistleblower Rule Amendments, whistleblowers are presumed eligible for the maximum 30% award if:

• The total award does not exceed $5 million.
• The claimant has no negative factors (e.g., culpability or delay).
• The claim does not involve whistleblowers engaged in misconduct.

In FY 2024, the SEC applied this presumption in 90% of cases where the maximum award was $5 million or less.

Why Report Securities Violations?

By participating in the SEC Whistleblower Program, individuals help combat fraud, hold violators accountable, and protect investors. With over $2.2 billion awarded to 444 whistleblowers since 2011, the program plays a critical role in exposing wrongdoing.

If you have information about securities fraud, consider consulting a legal professional before submitting a tip.

Learn more about the SEC Whistleblower Program by visiting the SEC’s official Whistleblower FAQ page.

Do You Have Questions or Concerns About Whistleblower Reporting of Securities Fraud to the SEC?

Making the decision to come forward as a whistleblower and report securities fraud to the SEC can be challenging. At Kehoe Law Firm, P.C., our legal team understands the complexities involved and has extensive experience investigating fraud, prosecuting wrongdoing, and working with individuals who bravely expose securities violations.

If you have questions about voluntarily providing information to the SEC as a whistleblower—whether regarding eligibility for a whistleblower award, the reporting process, or the required submission format—please send us a message to be contacted by an attorney for a free, no-obligation evaluation of potential whistleblower claims.

To speak directly with an attorney, please contact either Michael Yarnoff, Esq., [email protected], [email protected], (215) 792-6676, Ext. 804, or John Kehoe, Esq., [email protected], [email protected], (215) 792-6676, Ext. 801.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.