The U.S. Securities and Exchange Commission (SEC) is shifting its focus back to traditional enforcement cases under new leadership. Sam Waldon, the acting enforcement director, announced on Monday that the agency will prioritize cases involving individual wrongdoing and fraud, especially those targeting senior citizens. This marks a significant change from the SEC’s recent approach, which included more innovative enforcement strategies.
Waldon spoke at a securities industry event, indicating a move away from the creative enforcement theories that the SEC had been known for, such as the "shadow trading" case from 2021. He expressed that the agency would concentrate on well-established areas of enforcement, like insider trading and accounting fraud, as well as issues related to emerging technologies and fraud against retail investors.
The SEC has seen a notable shift since Republicans took control of the agency in January. Under the leadership of Paul Atkins, a Trump appointee, the SEC is expected to ease regulations for Wall Street. This includes a recent overhaul of its stance on cryptocurrency, where the agency has paused or dropped key cases against crypto firms.
Waldon also mentioned changes in how the enforcement staff can initiate formal investigations. Now, they need commission approval to start these processes, which he downplayed as having a limited impact. He stated that it is still early to assess how this will affect the agency’s operations.
With these changes, the SEC aims to enhance its focus on accountability for individuals involved in financial misconduct, signaling a more traditional approach to enforcement as it moves forward.