During the 12-month period ending in September 2025, the SEC filed 456 enforcement actions — 303 standalone actions, 69 “follow-on” administrative proceedings, and 84 actions against delinquent filers. That number was down from 583 enforcement actions in the previous year, a 22% drop in total actions and a 30% drop in standalone actions.
The numbers for fiscal year 2025 were the lowest in at least 20 years, but apparently not low enough. From October 1, 2025 through March 31, 2026, the SEC filed a total of just 67 enforcement actions.
Beginning in February 2025, the SEC also dismissed seven pending enforcement actions involving crypto assets, including cases against Coinbase, Consensys, Kraken (Payward), and Binance.
The enforcement staff at the SEC fell by roughly 18% during fiscal year 2025, and was followed by the sudden resignation of the enforcement director in March 2026.
The SEC says there’s nothing to worry about. Chairman Atkins says the SEC is returning to “first principles of rooting out fraud and remedying investor harm,” and that the SEC has “put a stop to regulation by enforcement.” He has also criticized the pursuit of large corporate penalties and novel legal theories.
I’m a securities lawyer. Shouldn’t I be happy that the SEC has slowed down enforcement of the law?
The answer is No. Businesses comply with the securities laws not to be good citizens, but because they believe they’ll get a ticket if they drive too fast. What if everyone knows the state police are in their barracks?
The American securities markets are, if anything, more in need of a policeman on duty now than they were 20 years ago. The crypto industry alone could use a policeman or two. Although I’m sure this is totally irrelevant, the crypto industry contributed $245 million to political campaigns in the 2024 cycle, accounting for nearly half of all corporate money. No other sector was close.
Our modern American securities markets were borne of the disasters of the 1920s, when Franklin Roosevelt teamed up with Texas Congressman Sam Rayburn to pass the Securities Act of 1933, the Securities Exchange Act of 1934, and all the rest. The first SEC Commissioner was Joseph Kennedy, a crook smarter than all the other crooks.
They succeeded in a spectacular way. Our markets are the most vibrant and well-policed in the world, contributing enormously to our wealth.
Everyone should remember that those two things go together. The bad guys are out there, lots of them, like the guys ready to go 110mph on the interstate. If they believe the SEC is asleep, or even drowsy, they’re going to do their thing. And if investors lose faith in our markets, if they believe the system is gamed in favor of big contributors, everyone loses.
Questions? Let me know.
Markley S. Roderick
Lex Nova Law
10 East Stow Road, Suite 250, Marlton, NJ 08053
P: 856.382.8402 | E: mroderick@lexnovalaw.com