The U.S. Securities and Exchange Commission (SEC) has implemented a significant policy change under its new leadership.
From now on, SEC attorneys must obtain approval from politically appointed senior officials before initiating a formal investigation.
Previously, the SEC had delegated investigative authority to lower-level officials to expedite processes. However, with the new regulation, all investigations will now require approval from top management, which could slow down enforcement actions. This change aims to reduce investigative pressure on companies and individuals. However, critics argue that it could weaken the SEC’s ability to act independently and effectively regulate the market.
The current SEC leadership consists of three members: Republicans Mark Uyeda and Hester Peirce, along with Democrat Caroline Crenshaw. Meanwhile, Trump’s nominee for SEC Chairman, Paul Atkins, is awaiting confirmation. Atkins is expected to adopt a more lenient approach to financial regulations and implement market-friendly policies.
