On 12 December 2023, it was reported that three hedge fund associations have sued the SEC in an attempt to vacate two new rules aimed at boosting transparency of short selling.

Claims from Associations:

• MFA, AIMA, and NAPF claim the SEC took conflicting stances with the rules.
  • Allowing transaction reports to be aggregated to protect investors' positions and yet, also requiring other transaction reports to be disclosed individually.
  • SEC did not take into account the interconnected nature of the two rules
  • Rules violate the Administrative Procedure Act, which requires agencies to justify their rules and consider feedback.

The SEC has said it will vigorously defend the short selling rule in court.