SEC Enforcement: 2025 In Review

In 2025, the U.S. Securities and Exchange Commission ("SEC") significantly shifted its approach to enforcement. With the start of the second term of the Trump Administration and the appointment of Paul Atkins as the SEC's Chairman, the SEC refocused its priorities through the adoption of a "back-to-basics" approach to enforcement. Under this approach, the SEC has reoriented its investigations and enforcement efforts to focus on traditional cases of securities fraud while also aiming to ensure securities markets are fair, orderly, and efficient. In addition, the SEC has made significant changes to its approach to regulating crypto assets, adopting a deregulatory approach to the sector in an effort to help facilitate the development of the crypto assets market.

"Back-to-Basics" Approach

In public statements, Chairman Atkins has repeated the theme that "it is a new day at the Securities and Exchange Commission."¹ Chairman Atkins explained the SEC's so-called "back-to-basics" approach is an effort to focus on actions to mitigate and address investor harm, including through the prioritization of traditional fraud cases over technical books-and-records and/or registration cases, noting that "[i]n the past, [there have been] examples of enforcement actions in areas, such as retention of books and records, that consumed excessive Commission resources not commensurate with any measure of investor harm."² Consistent with that approach, the SEC announced that it will move away from regulation by enforcement³ and shift toward prioritizing the reduction of "compliance burdens and facilitat[ion of] capital formation, including by simplifying pathways for raising capital and investor access to private businesses."⁴ Similarly, with respect to the burgeoning crypto market, the SEC is working to establish "clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law."⁵

Judge Margaret Ryan, the recently appointed Director of the Division of Enforcement, confirmed her alignment with this approach in a statement issued in connection with her appointment, stating that she looked forward to joining the SEC in its work to ensure that the Enforcement Division is "true to the SEC's mission in taking action on behalf of investors harmed by those who break the securities laws and providing an effective deterrent against fraudulent and manipulative activities in our financial markets."⁶ In September, Judge Ryan reiterated the Enforcement Division's focus on fraud in a statement announcing the formation of a Cross-Border Task Force to Combat Fraud. The new task force—which, according to Judge Ryan, was part of the "critical effort to enforce the federal securities laws and protect U.S. investors"—would "leverage the Division of Enforcement's resources and expertise to combat international market manipulation and fraud."⁷

The "back-to-basics" approach adopted by the SEC in fiscal year 2025 also appears to have informed dismissals of enforcement actions and closures of investigations and—overall—ushered in a measurable decrease in enforcement activity. In fiscal year 2025, the SEC dismissed several enforcement actions, including many involving controls and registration issues⁸ or involving investment advisors.⁹ With respect to the overall decrease in enforcement activity, Cornerstone Research observed that, based on SEC data available as of November 14, 2025, SEC enforcement actions against public companies and subsidiaries dropped by 30%.¹⁰ Only four enforcement actions were initiated against public companies and subsidiaries during the first year of the new administration, as nearly all enforcement actions initiated against public companies and subsidiaries in fiscal year 2025 (52 of 56 enforcement actions) were initiated prior to Gary Gensler's departure from the SEC.¹¹ Further, fiscal year 2025 saw a 27% decrease in enforcement actions more broadly (i.e., not limited to public companies and/or subsidiaries) as compared to fiscal year 2024.¹² Finally, during calendar year 2025, the SEC brought no new Foreign Corrupt Practices Act ("FCPA") enforcement actions.¹³ While the Trump Administration's executive order "Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security" did not expressly apply to the SEC, the SEC's movement away from FCPA enforcement actions is consistent with that executive order.¹⁴

To facilitate the "back-to-basics" approach that has guided the SEC over the past year, Chairman Atkins announced a realignment of reporting lines in the Divisions of Enforcement and Examinations to "better reflect each Division's national programs to improve efficiency, management, and oversight of the Divisions."¹⁵ Several personnel changes also illustrated the significant shifts happening at the SEC in fiscal year 2025. New directors were installed in key divisions (including the Division of Corporation Finance, the Division of Investment Management, and the Division of Trading and Markets), a new Inspector General was named, and Judge Ryan was appointed as the new Director of Enforcement.¹⁶

The SEC's decreased enforcement activity is consistent with the Trump administration's efforts to downsize the federal workforce.¹⁷ According to the Office of Personnel Management, the SEC reported having 4,037 employees in fiscal year 2026, which represents a 4.6% decrease from the 4,232 employees reported in fiscal year 2025 and a 17.7% decrease from the 4,905 employees reported in fiscal year 2024.¹⁸ Headcount at the SEC is expected to remain at a historical low in the upcoming year: Chairman Atkins appeared before the U.S. Senate Appropriations Subcommittee in June 2025 to discuss the SEC's proposed budget, for which he requested 4,101 full-time positions in fiscal year 2026, compared to the 4,548 staffers requested in fiscal year 2025 and the approximately 4,900 who were employed in fiscal year 2024.¹⁹

Footnotes

1 Statement on the Spring 2025 Regulatory Agenda, U.S. SEC & EXCH. COMM'N (Sept. 4, 2025), https://www.sec.gov/newsroom/speeches-statements/atkins-2025-regulatory-agenda-090425 ; Opening Remarks at the SEC Town Hall, U.S. SEC & EXCH. COMM'N (May 6, 2025) (emphasis in original), https://www.sec.gov/newsroom/speeches-statements/atkins-townhall-05062025 .

2 Testimony Before the United States House Appropriations Subcommittee on Financial Services and General Government, U.S. SEC & EXCH. COMM'N (May 20, 2025) [hereinafter Testimony of Paul S. Atkins], https://www.sec.gov/newsroom/speeches-statements/atkins-testimony-fsgg-052025 ; Keynote Address at the 25th Annual A.A. Sommer, Jr. Lecture on Corporate, Securities, and Financial Law, U.S. SEC & EXCH. COMM'N (Oct. 7, 2025), https://www.sec.gov/newsroom/speeches-statements/atkins-100925-keynote-address-25th-annual-aa-sommer-jrlecture-corporate-securities-financial-law ; see also Introductory Remarks at the 2nd Annual Judge Stanley Sporkin SEC Division of Enforcement Directors Panel, U.S. SEC & EXCH. COMM'N (Feb. 20, 2025), https://www.sec.gov/newsroom/speeches-statements/uyeda-remarks-enforcement-directors-panel-022025 (noting that the SEC "remain[s] dedicated to [its] more traditional investor protection efforts," notwithstanding the SEC's other efforts to "keep pace with innovation," particularly in relation to crypto asset regulation).

3 Remarks at the "SEC Speaks" Conference 2025, U.S. SEC & EXCH. COMM'N (May 19, 2025), https://www.sec.gov/newsroom/speeches-statements/uyeda-remarks-sec-speaks-051925 .

4 Statement on the Spring 2025 Regulatory Agenda, supra note 1.

5 Id.

6 SEC Names Judge Margaret Ryan as Director of the Division of Enforcement, U.S. SEC & EXCH. COMM'N (Aug. 21, 2025), https://www.sec.gov/newsroom/press-releases/2025-108-sec-names-judge-margaret-ryan-director-divisionenforcement .

7 SEC Announces Formation of Cross-Border Task Force to Combat Fraud, U.S. SEC & EXCH. COMM'N (Sept. 5, 2025), https://www.sec.gov/newsroom/press-releases/2025-113-sec-announces-formation-cross-border-task-force-combatfraud .

8 See, e.g., Complaint, SEC v. Fife, No. 1:20-cv-05227 (N.D. Ill. Sept. 3, 2020) (alleging defendant and companies he controls violated mandatory registration provisions of federal securities laws in connection with acquisition, conversion, and sale of more than 21 billion shares of penny stock; no fraud alleged otherwise), dismissed (June 18, 2025); Complaint, SEC v. Coinbase, No. 1:23-cv-04738 (S.D.N.Y. June 6, 2023) (alleging defendant operated as an unregistered broker, exchange, and clearing agency by soliciting investors, handling customer funds, and charging transaction fees in violation of federal securities laws; no fraud alleged otherwise), dismissed (Feb. 28, 2025); Complaint, SEC v. Cumberland DRW LLC, No. 1:24-cv-09842 (N.D. Ill. Oct. 10, 2024) (alleging defendant operated as an unregistered dealer in over $2 billion of crypto assets in violation of federal securities laws; no fraud alleged otherwise), dismissed (Mar. 27, 2025).

9 See, e.g., Complaint, SEC v. Silver Point Capital, L.P., No. 3:24-cv-02018 (D. Mass. Dec. 20, 2024) (alleging defendant failed to establish, implement, and enforce policies and procedures reasonably designed to prevent misuse of material nonpublic information in violation of the Investment Advisers Act of 1940; no fraud alleged otherwise), dismissed (Mar. 31, 2025).

10 CORNERSTONE RSCH., SEC ENFORCEMENT ACTIVITY: PUBLIC COMPANIES AND SUBSIDIARIES—FISCAL YEAR 2025 UPDATE 1 (Nov. 19, 2025), accessible at https://www.cornerstone.com/insights/press-releases/sec-enforcement-actions-fy2025/ .

11 Id.

12 Gerald Hodgkins, Lilia Abecassis & John Minor, SEC Focused on Fraud as Actions Markedly Declined in 2025, LAW360 (Nov. 12, 2025), https://www.law360.com/articles/2409430/sec-focused-on-fraud-as-actions-markedlydeclined-in-2025.

13 SEC Enforcement Actions: FCPA Cases, U.S. SEC & EXCH. COMM'N, https://www.sec.gov/about/divisionsoffices/division-enforcement/enforcement-topics-initiatives/sec-enforcement-actions-fcpa-cases (last visited Jan. 10, 2026).

14 Gaspard Le Dem, SEC's FCPA Chief, Top Deputy to Retire, GLOB. INVESTIGATIONS REV. (Apr. 1, 2025), https://globalinvestigationsreview.com/just-anti-corruption/article/secs-fcpa-chief-top-deputy-retire . But see SEC Enforcement Actions: FCPA Cases, supra note 13 (stating that "Enforcement of the Foreign Corrupt Practices Act (FCPA) continues to be a high priority area for the SEC").

15 Testimony of Paul S. Atkins, supra note 2.

16 James Moloney Named Director of Division of Corporation Finance, U.S. SEC & EXCH. COMM'N (Sept. 10, 2025), https://www.sec.gov/newsroom/press-releases/2025-115-james-moloney-named-director-division-corporationfinance ; Brian Daly Named Director of Division of Investment Management, U.S. SEC & EXCH. COMM'N (June 13, 2025), https://www.sec.gov/newsroom/press-releases/2025-88-brian-daly-named-director-division-investment-management ; SEC Names Jamie Selway as Director of Trading and Markets, U.S. SEC & EXCH. COMM'N (June 13, 2025), https://www.sec.gov/newsroom/press-releases/2025-87-sec-names-jamie-selway-director-trading-markets ; Kevin Muhlendorf Named SEC Inspector General, U.S. SEC & EXCH. COMM'N (June 23, 2025), https://www.sec.gov/newsroom/press-releases/2025-92-kevin-muhlendorf-named-sec-inspector-general ; SEC Names Judge Margaret Ryan as Director of the Division of Enforcement, supra note 6.

17 See Chris Prentice & Douglas Gillison, US SEC to See Exodus as Hundreds Take Trump's Buyout Offer, Sources Say, REUTERS (Mar. 21, 2025), https://www.reuters.com/world/us/us-sec-see-exodus-hundreds-take-trumps-buyoutoffers-sources-say-2025-03-21/ .

18 U.S. OFFICE OF PERSONNEL MANAGEMENT, Workforce Size & Composition, Federal Workforce Data, https://data.opm.gov/explore-data/analytics/workforce-size-and-composition ; see also Trump Workforce Cuts Table, N.Y. TIMES (Jan. 9, 2026), https://www.nytimes.com/interactive/2026/01/09/upshot/trump-workforce-cuts-table.html (denoting a 4,877 employee headcount in November 2024 and 4,037 employees at the same time in 2025).

19 SEC, FISCAL YEAR 2026: CONGRESSIONAL BUDGET JUSTIFICATION ANNUAL PERFORMANCE PLAN 2 (2025); Jessica Corso, SEC Seeks to Cut Enforcement Staff to 2010 Levels, LAW360 (June 5, 2025), https://www.law360.com/articles/2349239/sec-seeks-to-cut-enforcement-staff-to-2010-levels .

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