The U.S. Securities and Exchange Commission (SEC) is shifting its strategy under new leadership, focusing on traditional cases and individual accountability for financial crimes.
SEC's Strategy Shift
Acting Enforcement Director Sam Waldon stated that the agency will prioritize cases involving individual wrongdoing and fraud targeting older investors. "Creativity is probably not where we want to be," he said at a securities industry event.
Focus on Traditional Crimes
In recent years, the SEC has tried new legal strategies, like the 2021 "shadow trading" case, which they won. However, since Republicans took control in January, the focus has shifted. Instead of pursuing complex legal theories, the SEC will pursue financial crimes that have always been a problem, such as company deception or unfair stock trading with insider information.
Future Regulatory Changes
The SEC is changing its approach to cryptocurrency cases, with some cases paused or dropped since January. Requirements for initiating formal investigations have also been tightened. Waldon noted that this is yet to be seen.
Under the leadership of Sam Waldon, the SEC is returning to traditional forms of enforcement, focusing on longstanding financial crimes and individual accountability, while cryptocurrency cases are being re-evaluated.
