SEC Enforcement 2025: A Sharp Pivot in Priorities and Approach Under New Leadership

The US Securities and Exchange Commission underwent a dramatic transformation in 2025, with enforcement actions dropping to record lows as new leadership redirected the agency toward what officials term a "back to basics" approach. Under Chair Paul Atkins, who took office in April following Gary Gensler's January departure, the SEC has fundamentally reshaped its enforcement philosophy, staff structure, and regulatory priorities—particularly regarding cryptocurrency and novel securities theories.

Background and Context

The seismic shift began in January 2025 when Gary Gensler stepped down as SEC Chair, ending an aggressive enforcement era marked by record-breaking penalties and expansive interpretations of securities law. Commissioner Mark Uyeda served as Acting Chair until Paul Atkins was sworn in as the new permanent Chair in April 2025. The leadership transition coincided with significant staff reductions, with approximately 15% of Enforcement Division personnel departing, according to internal agency data.

According to Cornerstone Research, enforcement against public companies and subsidiaries plummeted in fiscal year 2025, with just four actions initiated under the new leadership compared to 52 under Gensler's administration. The overall monetary impact of enforcement actions fell by 45% to $808 million—the lowest total since 2012—with disgorgement and prejudgment interest reaching a record low of $108 million.

Key Figures and Entities

The new administration's direction has been shaped by several key appointments. In March 2025, the SEC appointed Judge Margaret Ryan, a veteran of the U.S. Court of Appeals for the Armed Forces since 2006, as the new Director of Enforcement. Despite limited securities law experience, Atkins emphasized that under Ryan's leadership, the Division would focus on "Congress' original intent: enforcing the securities laws, particularly as they relate to fraud and manipulation."

The restructuring also included creating the Crypto Task Force led by Commissioner Hester Peirce and establishing the Cyber and Emerging Technologies Unit (CETU) to replace the previous Crypto Assets and Cyber Unit, reducing dedicated crypto enforcement staff from 50 to approximately 30 personnel. The SEC also launched a Cross-Border Task Force in September targeting foreign-based frauds against US investors.

Legal and Financial Mechanisms

The SEC's enforcement mechanisms underwent significant recalibration in 2025. In October, Atkins announced major reforms to the Wells process, expanding defendant access to investigative files, extending response times from two to four weeks, and requiring full Commission review of all Wells submissions. These changes aimed to eliminate what officials called "gotcha game" tactics and promote procedural fairness.

Perhaps most significantly, the SEC rescinded the 2009 delegation allowing the Enforcement Division Director to issue formal investigation orders without Commission approval. This change, effective March 10, 2025, requires all formal investigations to receive direct Commission authorization, likely resulting in fewer formal investigations and more voluntary information requests.

The agency also reversed its policy on settlement waivers, allowing simultaneous consideration of settlement offers and related waiver requests—restoring a previous practice that had provided relief to parties facing uncertainty about collateral consequences.

International Implications and Policy Response

The most visible policy shift came in cryptocurrency regulation. In February, the SEC dismissed its high-profile action against Coinbase, marking the first such dismissal amid the agency's comprehensive reassessment of crypto oversight. This was followed by the closure of several other major crypto platform investigations, signaling a move away from "regulation by enforcement" toward establishing clearer registration pathways for digital asset firms.

The agency's new focus on "emerging financial technology"—particularly artificial intelligence—has led to increased scrutiny of AI washing cases. In April 2025, the SEC brought its first AI washing action under the new administration against Albert Saniger, former CEO of Nate Inc., alleging he made false statements about the company's AI capabilities to defraud investors.

Traditional enforcement priorities have resurged, with Bloomberg Law reporting that 33% of FY 2025 actions focused on offering fraud or insider trading, up from 26% the previous year. The agency also approved the Texas Stock Exchange (TXSE) in September, creating the first fully integrated national exchange headquartered in Texas and potentially reshaping US market structure.

Sources

This report draws on SEC official announcements, Cornerstone Research enforcement data, Commission statements, rulemaking filings, and Bloomberg Law reporting published throughout 2025.