SEC Enforcement Actions Drop 30% Under New Commissioner Paul Atkins

The U.S. Securities and Exchange Commission (SEC) has seen a significant 30% decrease in enforcement actions under the leadership of new Commissioner Paul Atkins, according to a report from Cornerstone Research. This decline, observed in fiscal year 2025 compared to the previous year under former Chair Gary Gensler, marks one of the most notable shifts in financial regulation recently.

The report highlights that the reduction is consistent with historical patterns during SEC administration changes. Notably, the SEC dropped investigations and lawsuits against several cryptocurrency companies, including the case against Coinbase, which was dismissed in February. Commissioner Atkins has emphasized that a top priority is to establish a rational and coherent regulatory foundation for digital assets, shifting focus from aggressive enforcement to guidance.

This change coincides with a 43-day U.S. government shutdown that limited SEC staff and operations, though the agency has since resumed normal activities. Additionally, the SEC's examination priorities for fiscal year 2026 do not explicitly mention cryptocurrencies or digital assets, signaling a potential recalibration of regulatory approach.

Looking ahead, a comprehensive digital asset market structure bill is anticipated in Congress by early 2026, which could grant the Commodity Futures Trading Commission (CFTC) significant authority over digital assets. Atkins has indicated that the SEC will not be lax on enforcement, suggesting that while current actions have decreased, the regulatory landscape remains dynamic.