SEC Shifts Focus to Traditional Enforcement Cases Under New Leadership

The U.S. Securities and Exchange Commission (SEC) is pivoting away from strict cryptocurrency enforcement under new leadership, focusing instead on traditional securities cases. Acting Enforcement Director Sam Waldon emphasized that the agency will prioritize issues such as insider trading, elder fraud, and individual accountability, while moving away from innovative enforcement theories. This strategic shift follows a significant staff exodus and the anticipated leadership of Paul Atkins, a Trump appointee, who is expected to adopt a more lenient approach towards Wall Street. The SEC has already paused key cases against cryptocurrency firms and restructured its enforcement processes, requiring commission approval for initiating investigations. Waldon noted that the agency's former creativity in enforcement is not a priority anymore, signaling a return to more conventional regulatory practices. This change marks a notable departure from the aggressive stance taken during the previous administration led by Gary Gensler.