Investor Choice Act of 2026

Key Points

• The bill bans brokers, dealers, funding portals, and investment advisers from forcing customers into mandatory arbitration for future disputes. Investors would keep the right to choose arbitration voluntarily but could no longer be locked into it through fine print.
• The bill preserves investors' ability to file class action lawsuits. Financial firms would be barred from using contract clauses that block customers from joining together in group legal actions.
• Public companies that force shareholders into arbitration through their bylaws or other governing documents would be banned from listing their stock on exchanges and from registering securities with the SEC.
• Existing arbitration clauses in current contracts would be voided when the law takes effect. However, any arbitration case that has already started before enactment would be allowed to continue.
• Congress finds that mandatory arbitration gives financial firms unfair advantages over everyday investors, severely restricting the ability of defrauded investors to seek justice. The bill aims to restore investor confidence by ensuring fair access to the courts.