Senate Democratic lawmakers are calling on the Securities and Exchange Commission to scrap a proposal that would allow many institutional money managers to avoid revealing their stock holdings.

The SEC’s proposed rule would raise the reporting threshold from $100 million to $3.5 billion. The agency said boosting the ceiling — which hasn’t been changed since it was put in place in 1975 — is needed to better reflect the size of today’s equity markets.

In a Wednesday letter to SEC Chairman Jay Clayton, four Democratic senators said the SEC went too far in raising the stock holding level at which the so-called Form 13F is required.  

“The proposal would radically increase the reporting threshold for Form 13F reports by institutional investment managers, upending the existing reporting framework and eliminating a significant source of transparency in the U.S. stock market,” wrote Sen. Sherrod Brown, D-Ohio and ranking member of the Senate Banking Committee. “Instead, we urge the SEC to withdraw the proposal and consider Form 13F reforms that would increase transparency and utility.”

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