The U.S. Securities and Exchange Commission plans to remove top leaders from its regional offices nationwide as part of cost-cutting measures proposed to the Trump administration. The SEC informed directors at its 10 regional offices on Friday about the elimination of their roles in the upcoming agency plan.
These changes mark the latest developments at the U.S. markets regulator under Republican leadership. The shift is in line with broader efforts by Republican President Donald Trump and special adviser Elon Musk to reduce costs at federal agencies.
The decision to remove regional directors, which requires a commission vote, forms part of a broader cost-cutting initiative. While specific details of the plan are not yet clear, any potential taxpayer benefits remain uncertain, as the SEC operates on industry fees and is "deficit neutral," as per their latest budget report to Congress.
The SEC, overseeing the U.S. capital markets totaling over $100 trillion, faces pressure to downsize staff. The agency's regional offices, from San Francisco to Miami, play crucial roles in overseeing examinations and investigations into public companies, brokers, and investment advisers within their jurisdictions.
Andrew M. Calamari, a former director at the SEC's New York office, noted the significance of regional leadership in enforcement decisions. The agency has already closed its regional hub in Salt Lake City back in June 2024, but there are currently no plans to shut down further offices.
The leadership of the SEC, including Acting Chairman Mark Uyeda, is engaged in reorganization efforts, with input from Democratic and Republican commissioners amidst ongoing discussions with the new Department of Government Efficiency. The agency is also streamlining operations, focusing on priorities, and reallocating resources to enhance efficiency.
Uyeda has advocated for the SEC's crypto enforcement unit to align with evolving policies for the sector. As internal changes unfold, the focus remains on deploying enforcement resources strategically within the industry.