The U.S. Securities and Exchange Commission (SEC) is showing no signs of slowing down its enforcement efforts under President Donald Trump, even as it steps back from high-profile cryptocurrency cases that defined the previous administration.

From January 20 to the end of June, the SEC filed 44 enforcement actions, only slightly down from 48 in the same period last year, according to a Bloomberg Law analysis. This consistency comes despite concerns over potential agency downsizing, shifting priorities, and political pressure to scale back oversight.

“Everyone expected there to be a lot less SEC activity because there’s been downsizing of government and a change in priorities,” said Mark Bini, a partner at Reed Smith LLP. “But I suspect that we are going to see a lot of these traditional heartland cases, because they’ve narrowed the focus.”

A Return to the SEC’s “Roots”

Under Chairman Paul Atkins, the SEC has pivoted toward what he calls its “core mission” of protecting investors from fraud. Recent enforcement actions have targeted alleged real estate scams, insider trading, and Ponzi-like schemes.

Atkins’ approach marks a sharp turn from the crypto-focused agenda of former SEC Chair Gary Gensler. During Gensler’s tenure, the agency pursued aggressive actions against big names like Coinbase in what critics dubbed “regulation by enforcement.”

Now, many of those crypto cases have been quietly dropped. Still, Atkins insists the agency isn’t abandoning oversight of digital assets altogether.

“Investors must continue to rely on effective enforcement against fraudulent activities,” Atkins told lawmakers in a Senate hearing last month.

Read More: SEC Drops Climate Rules as States and Global Powers Push Ahead

“Crypto-Adjacent” Crackdowns

While the SEC has downsized its crypto unit and shifted toward a more cooperative tone with the digital asset industry, it continues to pursue fraud cases where crypto is involved. These are often described as “crypto-adjacent” or schemes that use blockchain buzzwords to lure investors.

In May, for example, the SEC accused Unicoin Inc. and its executives of defrauding investors of over $100 million by falsely claiming their rights certificates were safe digital asset investments. Unicoin’s CEO called the case “a legacy matter” from the prior administration, suggesting the SEC’s appetite for new crypto cases has diminished.

Other recent actions involve executives accused of promoting fraudulent crypto ventures to raise tens of millions of dollars.

“Recent actions are almost crypto-adjacent in a way, garden variety fraud using crypto buzzwords, but the numbers are big and the extent of the consumer harm is large,” said Meghan Spillane, co-chair of Goodwin Procter’s digital currency practice.

Traditional Fraud Still a Priority

Beyond crypto, the SEC continues to pursue familiar territory: Insider trading, accounting fraud, and market manipulation in penny stocks.

Also Read: 2024: A Turning Point for ESG Engagement?

Setting “Rules of the Road”

Alongside enforcement, the SEC is issuing guidance to clarify expectations for market participants. Recently, it advised issuers of crypto exchange-traded products to use plain language about custody and risks.

Atkins’ team also released statements addressing crypto staking and other gray areas, but experts say formal rulemaking and legislation are essential for long-term clarity.

Two key bills are in the pipeline: The CLARITY Act, set for a House vote next week, and the GENIUS Act on stablecoins, already passed by the Senate.

“Getting smart legislation that really develops clear rules of the road is the way that something actually sticks and provides long-term certainty, rather than just capitalizing on the fervor of a very crypto-friendly administration,” Spillane said.

Follow more news and views via our Regulators and Featured Articles sections, and stay updated on top ESG events to attend in 2025 for industry insights and networking.

Source: Bloomberg Law