US SEC Enforcement Actions Fall 30% Under Trump’s Administration

Enforcement actions by the US SEC against public companies and their subsidiaries declined in the 2025 financial year.

According to a report by Cornerstone Research, only 56 enforcement actions were initiated during the year. This represents a 30% decline compared to last year.

Decline in Enforcement Actions Due to Change in Administration

The report noted that 56 actions were initiated against public companies and their subsidiaries in 2025.  This is 26 fewer than the total number of enforcement actions in the 2024 financial year.

However, this wasn’t entirely surprising, given that the US SEC initiated only 53 actions in Gary Gensler’s first year. Thus, the decline matches historical patterns. The first year of a new SEC administration usually brings fewer enforcement actions.

Interestingly, 52 of the 56 actions, which is 92% were initiated under former SEC chair Gary Gensler. This means that the then-acting chair, Mark Uyeda, and the new chair, Paul Atkins, initiated a total of 4 cases.

This is the lowest number by a new SEC administration since 2013. Atkins himself only initiated two cases.

However, the overall number of actions, including those against private companies and individuals, was much higher. In fact, the SEC hit a record high of 118 standalone actions initiated during that Q1 of 2025, the highest since 2000.

Only 25% of these actions were against public companies and their subsidiaries. The report noted that SEC action declined under Atkins. The new administration shifted the agency’s priorities.

Atkins said the SEC would return to its core mission. He emphasized a stronger focus on investor protection.

However, the researchers added that it is too early to determine whether this will be the SEC’s new approach. With the agency recently appointing Magareth Ryan as director of enforcement in September, there could be changes.

Meanwhile, the US SEC also got fewer settlements for the 2025 financial year. The $800 million in settlements was the lowest since 2012. Similarly, the total amount of disgorgement and prejudgment interest was also the lowest ever, with $108 million.

SEC Changes Approach to Crypto Entities With Focus on Regulatory Clarity

The report does not specifically mention crypto. However, there has also been a decline in the overall number of enforcement actions against the sector. This is due to the new US SEC administration’s pro-crypto approach.

The Gary Gensler administration focused heavily on regulation through enforcement. In contrast, the new administration has prioritized providing clearer regulatory guidance.

Atkins continues to emphasize this in public discussions. In a recent speech, the SEC chair announced the next phase of Project Crypto. He said the regulator aims to build a framework based on certainty to foster innovation and protect investors.

Already, the regulator has taken steps that demonstrate its willingness to create an enabling environment for crypto. It issued guidance on staking and memecoins, while also creating guidelines for crypto exchange-traded funds.

The regulator has also hosted several roundtables with industry stakeholders. However, analysts believe that the next 12 months will be crucial for the SEC in its bid to regulate the crypto industry.

TD Cowen’s Washington Research Group, led by Jaret Seiber, wrote that the agency must start acting now.

They wrote:

“The agency needs to start issuing proposals in the coming months in order to be able to finalize them in 2027. That then provides time to defend the rules in court to ensure they become implemented before the end of 2028.”