Is Regulation by Enforcement Dead Under Atkins?: SEC Roundup
Welcome to SEC Roundup, a bimonthly video series by former Securities and Exchange Commission senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Choice Advocates Network.
The SEC's enforcement activity has slowed to a crawl. In the first half of fiscal year 2025, the SEC filed 362 cases. In the second half? Only 144. The typical September surge of 200-plus enforcement actions to close out the fiscal year was a mere 47.
Why the "unprecedented slowdown"? Hosts Morgan and Zaccaro are joined by Dr. Jan Jindra and Dr. Adrienna Huffman, two former SEC financial economists now with the Brattle Group. They dive into their new report, which analyzes the numbers behind the dramatic policy shift from the Gensler-led Commission to the new Atkins administration.
Together, they break down:
- The "Unprecedented" Data: Just how sharp the drop in enforcement has been, particularly in the second half of the fiscal year.
- The End of "Regulation by Enforcement": Why headline-grabbing cases related to crypto, "shadow trading," and expanding the "securities dealer" definition have vanished from the docket.
- The "Return to Basics": The group's prediction that the SEC's new focus will be on individuals, criminal (DOJ) parallel actions, and returning money to harmed investors rather than on record-breaking corporate penalties.
- The "Atkins Effect": How the new administration's philosophy, combined with significant staff reductions and a government shutdown, is leading to a new era of enforcement.
- A New Resolution Path: Is the SEC now favoring cooperation, remediation, and self-reporting to resolve cases without a formal enforcement action?
See the video for the discussion.
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