The U.S. Securities and Exchange Commission (SEC) is set to return its focus to traditional enforcement cases, with a particular emphasis on individual wrongdoing and fraud, especially those targeting vulnerable groups like seniors, according to the agency’s acting enforcement director, Sam Waldon.
In recent years, the SEC has led innovative enforcement actions, including a notable 2021 “shadow trading” case. However, under new leadership, the agency is undergoing a significant shift, moving away from more novel approaches. Waldon, speaking at a securities industry event on Monday, emphasized that creativity would take a backseat as the agency prioritizes proven enforcement areas.
“We’re moving towards tried-and-true enforcement actions,” Waldon stated, adding that the SEC will continue to target cases involving insider trading, accounting and disclosure fraud, as well as emerging technologies and retail investor fraud. Individual accountability, he noted, will remain a key focus.
The shift comes as Paul Atkins, appointed by former President Donald Trump to lead the SEC, is expected to make his first appearance before Congress on Thursday. Under Atkins’ leadership, Wall Street is likely to experience a more lenient regulatory environment.
Since taking charge in January, the SEC has significantly altered its stance on cryptocurrency, pausing or abandoning major cases against crypto firms. The agency has also restricted its enforcement staff’s ability to initiate formal investigations without approval from the commission. Waldon, however, downplayed the immediate impact of this change, stating, “It’s too early to tell.”
With these adjustments, the SEC aims to align its enforcement strategy with more traditional cases, marking a shift from its recent trend of pushing the boundaries in securities regulation.
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