The U.S. Securities and Exchange Commission is poised to concentrate on more traditional cases under its new leadership, particularly those involving individual wrongdoing and fraud targeting the elderly, according to the agency's acting enforcement director.
While the SEC has pioneered innovative enforcement theories in recent years, including a notable victory in 2021, it is currently undergoing a significant shift in focus since the Republican leadership took over in January. Sam Waldon, the interim enforcement director, stated that the agency is moving away from creative approaches to prioritize established areas of enforcement such as insider trading, accounting and disclosure fraud, as well as cases related to emerging technologies and retail investor fraud.
Waldon emphasized that individual accountability will also be a key focus. "It's always a priority, but I do think that those are cases that are going to be received better by this commission," he noted.
Paul Atkins, appointed by former President Donald Trump to lead the agency, is scheduled to appear before Congress on Thursday. Under his leadership, the SEC is expected to implement changes affecting Wall Street.
Since January, the SEC has reformed its stance on cryptocurrency, making notable shifts in its enforcement strategies regarding cryptocurrency firms. The agency has also granted its enforcement staff the ability to initiate formal investigations without prior commission approval. When asked about this change, Waldon suggested it was too early to assess its impact, noting that there are various ways to facilitate the process for obtaining commission authorization.